Question

Calculate the M2 measure using the following information: Average portfolio return = 16% Portfolio standard deviation...

Calculate the M2 measure using the following information:

Average portfolio return = 16%

Portfolio standard deviation = 25%

Average market return = 10.5%

Market standard deviation = 20%

Average risk free rate = 4%

Express your answer in decimal notation (e.g., 0.0123 for 1.23%)

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

SEE THE IMAGE. ANY DOUBTS, FEEL FREE TO ASK. THUMBS UP PLEASE

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
A portfolio generates an annual return of 16%, a beta of 1.2, and a standard deviation...
A portfolio generates an annual return of 16%, a beta of 1.2, and a standard deviation of 19%. The market index return is 12% and has a standard deviation of 16%. What is the Sharpe measure of the portfolio and what is the Treynor measure of the portfolio if the risk-free rate is 6%? Explain the similarities and differences between the Sharpe ratio and Treynor measure. Also, explain the most appropriate application for each. Paragraph
The market index has average return 7% and standard deviation 30%. The risk-free rate is 3%....
The market index has average return 7% and standard deviation 30%. The risk-free rate is 3%. A portfolio has beta 1.4, unsystematic variance of 0.03, and an M2-measure of -0.01. What is the average return on the portfolio?
The expected return on the market portfolio is 13 percent with a standard deviation of 16...
The expected return on the market portfolio is 13 percent with a standard deviation of 16 percent. What are the expected return and standard deviation for a portfolio with 40 percent of the investment in the market portfolio borrowed at the risk-free rate of 5 percent? Expected return = 26.67%; expected return = 18.33% Expected return = 18.33%; standard deviation = 26.67% Expected return = 22.40%; standard deviation = 16.20% Expected return = 16.20%; standard deviation = 22.40%
Using the following information to calculate the standard deviation of a two-stock portfolio. Characteristics for this...
Using the following information to calculate the standard deviation of a two-stock portfolio. Characteristics for this two-stock portfolio: Caffeine Plus Drink stock: Amount invested $40,000. Expected Return = 11%. Standard Deviation = 15%; Sparkling Drink Stock: Amount invested $60,000. Expected Return = 25%. Standard Deviation = 20%. Correlation between Caffeine Plus Drink stock and Sparkling Drink stock is 0.30
Suppose that the expected return and standard deviation of the market are 10 percent and 16...
Suppose that the expected return and standard deviation of the market are 10 percent and 16 percent, respectively. Stock A has a standard deviation of 45 percent and a correlation with the market of 0.64. What would the expected return of a portfolio that is equally split between stock A, the market and a risk-free Treasury bill be if the risk-rate is 4%?
1.2. The risk-free rate is 6%, the expected return on the market portfolio is 14%, and...
1.2. The risk-free rate is 6%, the expected return on the market portfolio is 14%, and the standard deviation of the return on the market portfolio is 25%. Consider a portfolio with expected return of 16% and assume that it is on the efficient frontier. 1.2.1. Calculate the beta of this portfolio (4). 1.2.2. Calculate the standard deviation of its return (5).
The expected return of portfolio A is 16% and portfolio B is 25%. Their standard deviations...
The expected return of portfolio A is 16% and portfolio B is 25%. Their standard deviations are 21% (portfolio A ) and 30% (portfolio B). If the risk-free rate is 4%, which portfolio is the “dominant “. Show the concept (and formula) used to define dominance and all calculations.
The market portfolio has an expected return of 11.0 percent and a standard deviation of 21.0...
The market portfolio has an expected return of 11.0 percent and a standard deviation of 21.0 percent. The risk-free rate is 4.0 percent.    a. What is the expected return on a well-diversified portfolio with a standard deviation of 8.0 percent? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)      Expected return %    b. What is the standard deviation of a well-diversified portfolio with an expected return of 19.0...
Use the following information to calculate the expected return and standard deviation of a portfolio that...
Use the following information to calculate the expected return and standard deviation of a portfolio that is 60 percent invested in 3 Doors, Inc., and 40 percent invested in Down Co.: (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.) 3 Doors, Inc. Down Co. Expected return, E(R) 11 % 10 % Standard deviation, σ 31 33 Correlation .16
portfolio average return standard deviation beta a 18.9% 21.6% 1.92 b 13.2 12.8 1.27 A)The risk-free...
portfolio average return standard deviation beta a 18.9% 21.6% 1.92 b 13.2 12.8 1.27 A)The risk-free rate is 3.1 percent and the market risk premium is 6.8 percent. If a portfolio had been formed comprised of 50 percent portfolio A and 50 percent of portfolio B, the actual return, beta, expected return using CAPM, and Jensen's Alpha on the new portfolio is closest to
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT