1. Given a market portfolio with an expected return of 10% and standard deviation of 20% and a risk-free rate of 5%, according to the Capital Market Line what is the expected return of a portfolio with a 30% standard deviation? Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals.
2. What is the corresponding beta of the market portfolio?
1. Given a market portfolio with an expected return of 10% and standard deviation of 20%...
Given a market portfolio with an expected return of 10% and standard deviation of 20% and a risk-free rate of 5%, A. According to the Capital Market Line what is the expected return of a portfolio with a 30% standard deviation? B. What is the beta of the market portfolio? Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals.
Given a market portfolio with an expected return of 10% and standard deviation of 20% and a risk-free rate of 5%, according to the Capital Market Line what is the expected return of a portfolio with a 30% standard deviation? Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals.
The market portfolio has an expected return of 11.5 percent and a standard deviation of 21.5 percent. The risk-free rate is 4.5 percent. a. What is the expected return on a well-diversified portfolio with a standard deviation of 8.5 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 19.5...
The market portfolio has an expected return of 12.3 percent and a standard deviation of 22.3 percent. The risk-free rate is 5.3 percent. a. What is the expected return on a well-diversified portfolio with a standard deviation of 9.3 percent? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) b. What is the standard deviation of a well-diversified portfolio with an expected return of 20.3 percent? (Do not round intermediate...
Suppose that your portfolio consists of 20% of XYZ stock and 80% of CCC stock. XYZ has a beta of 1.5 and CCC has a beta of 1.3. What is the expected return of this portfolio according to the CAPM. Assume that the expected return on the market portfolio is 12% and the risk-free rate is 5% Enter your answer as a percent. Do not include the % sign. Round your final answer to two decimals.
The expected return of the market portfolio is 14 percent with a standard deviation of 25 percent. The risk-free rate is 6 percent. What is the weight of the market portfolio in an efficient portfolio with a standard deviation of 30 percent? A) 120% B) 83.33% C) 20% D) 16.78%
The following are estimates for two stocks. Stock Expected Return Beta Firm-Specific Standard Deviation A 10 % 0.70 28 % B 18 1.25 42 The market index has a standard deviation of 22% and the risk-free rate is 7%. a. What are the standard deviations of stocks A and B? (Do not round intermediate calculations. Round your answers to 2 decimal places.) b. Suppose that we were to construct a portfolio with proportions: Stock A 0.35 Stock B 0.35 T-bills...
Given that the risk-free rate is 5%, the expected return on the market portfolio is 20%, and the standard deviation of returns to the market portfolio is 20%, answer the following questions: c. Now suppose that you want to have a portfolio, which pays 25% expected return. What is the weight in the risk free asset and in the market portfolio? d. What do these weights mean: What are you doing with the risk free asset and what are you...
a. The expected rate of return for portfolio A is The standard deviation of portfolio A is a. The expected rate of return for portfolio B is The standard deviation of portfolio B is Score: 0 of 1 pt | 4 of 9 (2 complete) HW Score: 22.22%, 2 of 9 pts P8-7 (similar to) :& Question Help (Computing the expected rate of return and risk) After a tumultuous period in the stock market, Logan Morgan is considering an investment...
A portfolio that combines the risk-free asset and the market portfolio has an expected return of 9 percent and a standard deviation of 16 percent. The risk-free rate is 4.1 percent and the expected return on the market portfolio is 11 percent. Assume the capital asset pricing model holds. What expected rate of return would a security earn if it had a .38 correlation with the market portfolio and a standard deviation of 60 percent?