Question

You manage a risky portfolio with an expected rate of return of 18% and a standard...

You manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 28%. The T-bill rate is 8%. Your client choose s to invest 70% of a portfolio in your fund and 30% in an essentially risk-free money market fund. What is the expected return and standard deviation of the rate of return on his portfolio? Do not round intermediate calculations. Round "standard deviation to 1 decimal place.

Rate of Return

Expected return _______?_%___

Standard Deviation _______?%____

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Please refer to below spreadsheet for calculation and answer. Cell reference also provided.

Cell reference -

0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
You manage a risky portfolio with an expected rate of return of 19% and a standard...
You manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 34%. The T-bill rate is 8%. Your client chooses to invest 70% of a portfolio in your fund and 30% in an essentially risk-free money market fund. What is the expected return and standard deviation of the rate of return on his portfolio? Expected Return= x% Standard deviation = y%
You manage a risky portfolio with an expected rate of return of 20% and a standard...
You manage a risky portfolio with an expected rate of return of 20% and a standard deviation of 36%. The T-bill rate is 5%. Your client chooses to invest 60% of a portfolio in your fund and 40% in an essentially risk-free money market fund. What are the expected return and standard deviation of the rate of return on his portfolio? (Do not round intermediate calculations. Round "Standard deviation" to 2 decimal places.)
You manage a risky portfolio with an expected rate of return of 18% and a standard...
You manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 36%. The T-bill rate is 6%. Your risky portfolio includes the following investments in the given proportions: Stock A 27 % Stock B 35 % Stock C 38 % Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 15% ....
You manage a risky portfolio with an expected rate of return of 19% and a standard...
You manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 34%. The T-bill rate is 8%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. What is the reward-to-volatility (Sharpe) ratio (S) of your risky portfolio? Your client’s?(round answers to 4 decimal places Reward-to-volatility ratio? Clients reward-to-volatility ratio?
You manage a risky mutual fund with expected rate of return of 18% and standard deviation...
You manage a risky mutual fund with expected rate of return of 18% and standard deviation of 28%. The T-bill rate is 8%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill. What is the expected value and standard deviation of the rate of return on his portfolio? Suppose that your risky mutual fund includes the following investments in the given proportions. What are the investment proportions of your client’s overall portfolio,...
Assume that you manage a risky portfolio with an expected rate of return of 16% and...
Assume that you manage a risky portfolio with an expected rate of return of 16% and a standard deviation of 32%. The T-bill rate is 6%. Your risky portfolio includes the following investments in the given proportions: Stock A 28 % Stock B 34 Stock C 38 Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have...
Assume that you manage a risky portfolio with an expected rate of return of 20% and...
Assume that you manage a risky portfolio with an expected rate of return of 20% and a standard deviation of 44%. The T-bill rate is 4%. Your risky portfolio includes the following investments in the given proportions: Stock A 28 % Stock B 37 % Stock C 35 % Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio...
You manage a risky portfolio with an expected rate of return of 19% and a standard...
You manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 33%. The T-bill rate is 7%. Your risky portfolio includes the following investments in the given proportions: Stock A 35 % Stock B 32 % Stock C 33 % Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 16%. a....
Assume that you manage a risky portfolio with an expected rate of return of 17% and...
Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 28%. The T-bill rate is 5.9%. Your risky portfolio includes the following investments in the given proportions:   Stock A 21 %   Stock B 42 %   Stock C 37 %    Suppose a client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his...
Assume that you are managing a risky portfolio with expected rate of return of 18% and...
Assume that you are managing a risky portfolio with expected rate of return of 18% and standard deviation of 28%. The T-bill rate is 8%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. Also, the client’s expected return of the portfolio is 15% and the standard deviation of the rate of return on his portfolio is 19.6%. Suppose that your risky portfolio includes the following investments in the...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT