A portfolio with a 19% standard deviation generated a return of 17% last year when T-bills...

A portfolio with a 19% standard deviation generated a return of 17% last year when T-bills were paying 4.4%. This portfolio had a Sharpe measure of ____.

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jeff jeffy answered 1 year ago

You have a portfolio with a standard deviation of 25% and an expected return of 17%....

You have a portfolio with a standard deviation of 25% and an expected return of 17%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 30% of your money in the new stock and 70% of your money in your existing portfolio, which one should you add? Expected Return Standard Deviation Correlation with Your Portfolio's Returns Stock A 14% 25% 0.2 Stock B 14% 18% 0.6 Standard deviation...

You have a portfolio with a standard deviation of 26% and an expected return of 19%....

You have a portfolio with a standard deviation of 26% and an expected return of 19%. You are considering adding one of the two shares in the table below. If after adding the shares you will have 20% of your money in the new shares and 80% of your money in your existing portfolio, which one should you add? Expected return Standard deviation Correlation with your portfolio's returns Share A 13% 25% 0.4 Share B 13% 17% 0.5 Standard deviation...

Assume you manage a risky portfolio with an expected return of 17% and a standard deviation...

Assume you manage a risky portfolio with an expected return of 17% and a standard deviation of 27%. The T-bill rate is 7%. Your client chooses to invest a proportion (y) of his portfolio in your fund and the rest (1-y) in the T-bill money market fund. His overall portfolio will have an expected rate of return of 15% What is the proportion y? What is the standard deviation of the rate of return on your client’s portfolio?

Assume that tangent portfolio T has an expected return of 14%, with a standard deviation of...

Assume that tangent portfolio T has an expected return of 14%, with a standard deviation of 20%, and that the risk-free rate is 3%. You choose to invest a total of $1,000. $350 is invested in portfolio T and $650 in the risk-free asset. What are the expected return and standard deviation of your portfolio? Suppose you borrow $200 at the risk-free rate. Combining this with your original sum of $1,000, you invest a total of $1,200 in the risky...

Calculate the expected return and standard deviation of the portfolio.

A portfolio consists of two stocks: Stock Expected Return Standard Deviation Weight Stock 1 10% 15% 0.30 Stock 2 13% 20% ??? The correlation between the two stocks’ return is 0.50 Calculate the expected return and standard deviation of the portfolio. Expected Return: Standard Deviation: (i) Briefly explain, in general, when there would be “benefits of diversification” (for any portfolio of two securities). (ii) Describe whether the above portfolio would...

The expected annual return on the market portfolio is 7.54%. The mean annual return on T-bills...

The expected annual return on the market portfolio is 7.54%. The mean annual return on T-bills if 2.79%. Beta for The Boeing Company is 1.14. Based on the CAPM, what is the expected annual rate of return for Boeing? Do not round at intermediate steps in your calculation. Express your answer in percent. Round to two decimal places.

Portfolio A has an expected return of 10% per year and a standard deviation of 20%...

Portfolio A has an expected return of 10% per year and a standard deviation of 20% per year, while the risk-free asset returns 2% per year. a. What is the expected return of a portfolio consisting the risk-free asset and portfolio A that has a standard deviation of 15%? b. What is the portfolio weight on A of a portfolio consisting the risk-free asset and portfolio A that has a standard deviation of 15%? c. What is the standard deviation...

Here are returns and standard deviations for four investments. Return (%) Standard Deviation (%) Treasury bills...

Here are returns and standard deviations for four investments. Return (%) Standard Deviation (%) Treasury bills 5.0 0 Stock P 11.5 16 Stock Q 14.5 28 Stock R 24.0 27 Calculate the standard deviations of the following portfolios. a. 50% in Treasury bills, 50% in stock P. (Enter your answer as a percent rounded to 2 decimal places.) a.Standart Deviation:?% b. 50% each in Q and R, assuming the shares have: (Do not round intermediate calculations. Enter your answers as...

Portfolio Average Return Standard Deviation Beta A &nb

Portfolio Average Return Standard Deviation Beta A 14.7% 18.6% 1.47 B 8.8 14.2 .78 C 11.2 16.0 1.22 The risk-free rate is 4.5 percent and the market risk premium is 7 percent. What is the Treynor ratio of a portfolio comprised of 30 percent portfolio A, 20 percent portfolio B, and 50 percent portfolio C? SHOW WORK

Over the prior year the return and standard deviation of the M portfolio have both increased,...

Over the prior year the return and standard deviation of the M portfolio have both increased, but no other changes have happened. What are the implications of this for Beta and for expected returns?

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