Question
In: Finance
You are going to invest in Asset J and Asset S. Asset J has an expected...
You are going to invest in Asset J and Asset S. Asset J has an expected return of 13.8 percent and a standard deviation of 54.8 percent. Asset S has an expected return of 10.8 percent and a standard deviation of 19.8 percent. The correlation between the two assets is .50. What are the standard deviation and expected return of the minimum variance portfolio? (Do not round intermediate calculations. Enter your answers as a percent rounded to 2 decimal places.)
Solutions
jeff jeffy answered 1 year agoRelated Solutions
You are going to invest in Asset J and Asset S. Asset J has an expected...
You are going to invest in Asset J and Asset S. Asset J has an
expected return of 11.2 percent and a standard deviation of 52.2
percent. Asset S has an expected return of 8.2 percent and a
standard deviation of 17.2 percent. The correlation between the two
assets is .50. What are the standard deviation and expected return
of the minimum variance portfolio? (Do not round intermediate
calculations. Enter your answers as a percent rounded to 2 decimal
places.)
You are going to invest in Asset J and Asset S. Asset J has an expected...
You are going to invest in Asset J and Asset S. Asset J has an
expected return of 14.4 percent and a standard deviation of 55.4
percent. Asset S has an expected return of 11.4 percent and a
standard deviation of 20.4 percent. The correlation between the two
assets is .50. What are the standard deviation and expected return
of the minimum variance portfolio? (Do not round
intermediate calculations. Enter your answers as a percent rounded
to 2 decimal places.)
Assume that you are going to invest $140,000 in a two asset portfolio. You will invest...
Assume that you are going to invest $140,000 in a two asset
portfolio. You will invest $100,000 in the fully diversified market
portfolio and the remainder of your funds will be invested in the
riskless security. Assume the market risk premium is 8% and the
riskless return is 4%. Compute the expected return on this
portfolio.
Respond in percentage form without the percent sign and round to
the second decimal place.
You invest $98 in a risky asset and the T-bill. The risky asset has an expected...
You invest $98 in a risky asset and the T-bill. The risky asset
has an expected rate of return of 18% and a standard deviation of
0.24, and a T-bill with a rate of return of 5%. A portfolio that
has an expected outcome of $111 is formed by investing what
dollar amount in the risky asset?
Round your answer to the nearest cent (2 decimal places).
You invest $100 in a risky asset with an expected rate of return of 0.13 and...
You invest $100 in a risky asset with an expected rate of return
of 0.13 and a standard deviation of 0.11 and a T-bill with a rate
of return of 0.03.
The slope of the capital allocation line formed with the risky
asset and the risk-free asset is equal to
You invest $100 in a risky asset with an expected rate of return of 0.11 and...
You invest $100 in a risky asset with an expected rate of return
of 0.11 and a standard deviation of 0.20 and a T-bill with a rate
of return of 0.03. What percentages of your money must be invested
in the risk-free asset and the risky asset, respectively, to form a
portfolio with a standard deviation of 0.08? Select one: a. 30% and
70% b. 50% and 50% c. 60% and 40% d. 40% and 60% e. Cannot be
determined....
You invest $100 in a risky asset with an expected rate of return of 0.25 and...
You invest $100 in a risky asset with an expected rate of
return of 0.25 and a standard deviation of 0.20 and a T-bill with a
rate of return of 0.05.
If the portfolio standard deviation is 0.12, what is the
expected return of this portfolio?
A.
14.0%
B.
12.0%
C.
13.0%
D.
17.0%
E.
Cannot be determined
You invest $100 in a risky asset with an expected rate of return of 9% and...
You invest $100 in a risky asset with an expected rate of return
of 9% and a standard deviation of 0.15 and a T-bill with a rate of
return of 5%. What percentages of your money must be invested in
the risky asset to form a portfolio with an expected return of
9%?
You invest $100 in a risky asset with an expected rate of return of 0.14 and...
You invest $100 in a
risky asset with an expected rate of return of 0.14 and a standard
deviation of 0.20 and a T-bill with a rate of return of 0.06.
What percentages of
your money must be invested in the risk-free asset and the risky
asset, respectively, to form a portfolio with a standard deviation
of 0.08?
A.
30% and 70%
B.
50% and 50%
C.
60% and 40%
D.
cannot be
determined
E.
40% and 60%
You invest $100 in a risky asset with an expected rate of return of 15% and...
You invest $100 in a risky asset with an expected rate of return
of 15% and a standard deviation of 15% and a T-bill with a rate of
return of 5% and E (U)= E(r) - 0.5Aσ2. Suppose your risk aversion
factor is 5. What weight would you assign to the risk-free asset?
A) 0.8889. B) 0.1111. C) 0.2457. D) 0.2111.
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- Let p0 = 1+x; p1 = 1+3x+x2; p2 = 2x+x2; p3 = 1+x+x2 2 R[x]. (a)...
- A: Provide a numerical example of how Earned Value Management may mislead us as to whether...
- Daryl wishes to save money to provide for his retirement. Beginning one month from now, he...
- L= {w belongs to {0,1}* | the number of 0's is a prime number} . Prove...
- What are Foyal's five management functions? Identify which organizational units accomplish these functions in your airport...
- An air conditioning unit, where water condensation is allowed, cools 9,791 m3 / min of humid...
- how do u calculate value of a bond You consider purchasing $1000 face value 7 year...
ADVERTISEMENT