Question

An investor can choose to allocate her investment into a risky portfolio and the risk-free rate. The risky portfolio has an expected return of 18.3 percent and a standard deviation of 21.0 percent. The risk-free rate is 8.4 percent. The investor targets a complete portfolio with an expected return of 14 percent. The standard deviation of this complete portfolio is

Answer #1

The expected return on the risky portfolio is 15%. The risk-free
rate is 5%. The standard deviation of return on the risky portfolio
is 22%. Tina constructed a complete portfolio from this risky
portfolio and the risk-free asset. If her portfolio has an expected
return of 12%, what is the standard deviation of her complete
portfolio?

Assume that an investor invests all of her wealth ($1000) in a
risky portfolio with expected return of 19.38% and standard
deviation of 3.12%. She borrows an additional $377 dollars at the
risk-free rate of 2.82%, which she also invests in the risky
portfolio.
The expected standard deviation for her complete portfolio =
%

An investor can design a risky portfolio based on two stocks, A
and B. Stock A has an expected return of 21% and a standard
deviation of return of 35%. Stock B has an expected return of 14%
and a standard deviation of return of 21%. The correlation
coefficient between the returns of A and B is 0.3. The risk-free
rate of return is 1.9%. What is the expected return on the optimal
risky portfolio?

The return on the risky portfolio is 15%. The risk-free rate, as
well as the investor's borrowing rate, is 10%. The standard
deviation of return on the risky portfolio is 20%. If the standard
deviation on the complete portfolio is 25%, how much is the
expected return on the complete portfolio?

The return on the risky portfolio is 15%. The risk-free rate, as
well as the investorâ€™s borrowing rate, is 10%. The standard
deviation of return on the risky portfolio is 20%. If the standard
deviation on the complete portfolio is 25%, the expected return on
the complete portfolio is ________.
6%
8.75 %
10%
16.25%

An investor can design a risky portfolio based on two stocks, A
and B. Stock A has an expected return of 18% and a standard
deviation of return of 20%. Stock B has an expected return of 14%
and a standard deviation of return of 5%. The correlation
coefficient between the returns of A and B is .50. The risk-free
rate of return is 10%. The standard deviation of return on the
optimal risky portfolio is _________.
A. 0%
B....

An investor can design a risky portfolio based on two stocks, A
and B. Stock A has an expected return of 18% and a standard
deviation of return of 20%. Stock B has an expected return of 14%
and a standard deviation of return of 5%. The correlation
coefficient between the returns of A and B is .50. The risk-free
rate of return is 10%. The proportion of the optimal risky
portfolio that should be invested in stock A is...

An investor can design a risky portfolio based on two stocks, A
and B. Stock A has an expected return of 17% and a standard
deviation of return of 29%. Stock B has an expected return of 12%
and a standard deviation of return of 14%. The correlation
coefficient between the returns of A and B is .4. The risk-free
rate of return is 6%. The proportion of the optimal risky portfolio
that should be invested in stock B is...

An investor can design a risky portfolio based on two stocks, A
and B. Stock A has an expected return of 14% and a standard
deviation of return of 26%. Stock B has an expected return of 9%
and a standard deviation of return of 11%. The correlation
coefficient between the returns of A and B is .5. The risk-free
rate of return is 5%. The proportion of the optimal risky portfolio
that should be invested in stock B is...

show work in excel please
An investor can design a risky portfolio based on two stocks, A
and B. Stock A has an expected return of 15% and a standard
deviation of return of 29%. Stock B has an expected return of 10%
and a standard deviation of return of 14%. The correlation
coefficient between the returns of A and B is .5. The risk-free
rate of return is 5%. The proportion of the optimal risky portfolio
that should be...

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