Question

Intro

You want to invest in either a stock or Treasury bills (the risk-free asset). The stock has an expected return of 6% and a standard deviation of returns of 34%. T-bills have a return of 2%.

Attempt 1/1 for 10 pts.

Part 1

If you invest 70% in the stock and 30% in T-bills, what is your expected return for the complete portfolio?

Move on

Attempt 1/1 for 10 pts.

Part 2

**What is the standard deviation of returns for such a
portfolio?**

**3+ Decimals**

Answer #1

Calculations-

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Mary has $100 to invest in either a risky stock or a risk-free
treasury bill. The table below shows the expected return and risks
for each. Expected return for stock is 30% and risk is 40. Expected
return for treasury bills is 3% and the risk is 0.
a. Assume Mary’s overall portfolio risk is 30. i. What is her
expected return for her portfolio. ii. What proportion of her
overall money does she invest in stocks? b. What if...

Intro
The price of Facebook stock is currently at $30 and you decide
to buy 200 shares on margin. You borrow $3,000 from your broker and
finance the remainder of the purchase with your own cash.
Attempt 1/1 for 10 pts.
Part 1
What is your initial percentage margin?
Move on
Attempt 1/1 for 10 pts.
Part 2
If the price rises to $35, what is the net
return?
3+ Decimals

You invest $100 in a portfolio of stock JET and a risk-free
asset with a return of 5%. JET has an expected return of 12% and a
standard deviation of 10%. What is the percentage of your portfolio
in the risk-free asset if your portfolio’s standard deviation is
9%?
A. 30%
B. 90%
C. 50%
D. 10%

You invest $100 in a portfolio of stock JET and a risk-free
asset with a return of 5%. JET has an expected return of 12% and a
standard deviation of 10%. What is the percentage of your portfolio
in the risk-free asset if your portfolio’s standard deviation is
9%? A. 30% B. 90% C. 50% D. 10%

you have $100,000 to invest in either stock D, Stock F, or a
risk-free asset. ou must invest all your money. Your goal is to
create a portfolio that has an expected return of 9.9 percent.
Assume D has an expected return of 12.8 percent, F has an expected
return of 9.3 percent, and the risk-free rate is 3.8 percent.
Required: If you invest $50,000 in Stock D, how much will you
invest in Stock F?

1. Suppose you have a portfolio that is 70% in the risk-free
asset and 30% in a stock. The stock has a standard deviation of
0.30 (i.e., 30%). What is the standard deviation of the portfolio?
A. 0.30 (i.e., 30%) B. 0.09 (i.e., 9%) C. 0.21 (i.e., 21%) D.
0
2. You have a total of $100,000 to invest in a portfolio of assets.
The portfolio is composed of a risky asset with an expected rate of
return of 15%...

There are 2 investment -- a risk-free security that returns 2%
and a risky asset that has expected return of 10% and standard
deviation of 18%.
1). What are the weights of the complete portfolio that has an
8% expected return?
2). What is the standard deviation of that portfolio?
3). If the portfolio is valued at $100,000, how much do you
invest in the risk-free security and how much do you invest in the
risky asset?

Intro
You decide to sell short 340 shares at a price of $60 each. The
initial margin requirement is 50%.
Attempt 1/1 for 10 pts.
Part 1
How much money do you have to contribute to the account?
Move on
Attempt 1/1 for 10 pts.
Part 2
If the price rises to $75 after 5 months, what is the
new percentage margin?
3+ Decimals

You invest $1,700 in a complete portfolio. The complete
portfolio is composed of a risky asset with an expected rate of
return of 18% and a standard deviation of 25% and a Treasury bill
with a rate of return of 9%. __________ of your complete portfolio
should be invested in the risky portfolio if you want your complete
portfolio to have a standard deviation of 12%.

. You have $50,000 to invest and are considering a portfolio
which includes one risk-free asset and two risky assets (X and Y).
The risk-free return is 5% and the returns for X and Y are 25% and
12% respectively. The optimal risky asset combination is 70% X and
30% Y. If you want a target return of 18% from this portfolio, how
much money should you invest in asset Y? (Points : 5)
12,111.80
28,260.87
9,627.32
16.517.92
31,271.08

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