Given an optimal risky portfolio with expected return of 12% and standard deviation of 26% and...
Given an optimal risky portfolio with expected return of 12% and standard deviation of 26% and a risk free rate of 3%, what is the slope of the best feasible CAL?
Group of answer choices
0.64
0.14
0.08
0.35
0.36
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Given an optimal risky portfolio with expected return of 12% and
standard deviation of 26% and...
Given an optimal risky portfolio with an expected return of 0.09, standard deviation of 0.17, and...
Given an optimal risky portfolio with an expected return of 0.09, standard deviation of 0.17, and a risk-free rate of 0.03, what is the slope of the best feasible capital allocation line (CAL)?
Suppose the optimal risky portfolio has an expected return of 13.25% and a standard deviation of...
Suppose the optimal risky portfolio has an expected return of 13.25% and a standard deviation of 24.57%. Mr. Jones wants an efficient portfolio with an expected return of 12%. If the optimal risky portfolio consists of 70.75% in stocks and 29.25% in bonds, what is the proportion of Mr. Jones' portfolio invested in the stock fund. the risk-free rate is 5.5%.
3. You have a risky portfolio that yields an expected rate of return of 15% with...
3. You have a risky portfolio that yields an expected rate of return of 15% with a standard deviation of 25%. Draw the CAL for an expected return/standard deviation diagram if the risk free rate is 5%. a. What is the slope of the CAL? b. If your coefficient of risk aversion is 5, how much should you invest in the risky portfolio? 4. A pension fund manager is considering three mutual funds. The first is a stock fund, the...
A risky portfolio has an expected return of 12% and standard deviation of 25%. Given a...
A risky portfolio has an expected return of 12% and standard deviation of 25%. Given a risk free rate of 3%, what percentage of a clients portfolio should be allocated to the risky portfolio if the client has a risk aversion of 4?
You manage a risky portfolio with an expected return of 12% and a standard deviation of 24%. Assume that you can invest...
You manage a risky portfolio with an expected return of 12% and a standard deviation of 24%. Assume that you can invest and borrow at a risk-free rate of 3%, using T-bills. a. Draw the Capital Allocation Line (CAL) for this combination of risky portfolio and risk-free asset. What is the Sharpe ratio of the risky portfolio? b. Your client chooses to invest 50% of their funds into your risky portfolio and 50% risk-free. What is the expected return and...
For the following questions, assume that you manage a risky portfolio with an expected rate of...
For the following questions, assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 26%. The T-bill rate is 7%. 3. You have a risky portfolio that yields an expected rate of return of 15% with a standard deviation of 25%. Draw the CAL for an expected return/standard deviation diagram if the risk free rate is 5%. a. What is the slope of the CAL? b. If your coefficient of...
A risky portfolio has an expected return of 12% and standared deviation of 25% given a...
A risky portfolio has an expected return of 12% and standared deviation of 25% given a risk free rate of 3% what is the expected return on the complete portfolio for a client with a risk aversion of 4?
The expected return and standard deviation of a portfolio of risky assets is equal to the...
The expected return and standard deviation of a portfolio of risky assets is equal to the weighted average of the individual asset's expected returns and standard deviation. Group of answer choices True False
Question 19 5 pts A risky fund has an expected return of 10% and standard deviation...
Question 19 5 pts A risky fund has an expected return of 10% and standard deviation of 18%. The risk-free rate is 6%. Arisk-averse investor having a risk aversion coefficient (A) equal to 3.5. is considering investing a portion of her retirement money in the risky fund with the remainder in cash. The Sharpe ratio of her optimal complete portfolio is: O 0.22 045 0.35 Can't tell from information provided. Need the return and risk of the optimal complete portfolio....
Q2: A: Suppose that you manage a risky portfolio with an expected rate of return of...
Q2: A: Suppose that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 25%. The T-bill rate is 3%. Your client chooses to invest 60% of a portfolio in your fund and 40% in the T-bills. What is the slope of the Capial Allocation Line (CAL)? 0.36 B: Suppose the same client in the previous problem decides to invest in your risky portfolio a proportion (y) of his total investment budget...
For the following questions, assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 26%. The T-bill rate is 7%. 3. You have a risky portfolio that yields an expected rate of return of 15% with a standard deviation of 25%. Draw the CAL for an expected return/standard deviation diagram if the risk free rate is 5%. a. What is the slope of the CAL? b. If your coefficient of...
Question 19 5 pts A risky fund has an expected return of 10% and standard deviation of 18%. The risk-free rate is 6%. Arisk-averse investor having a risk aversion coefficient (A) equal to 3.5. is considering investing a portion of her retirement money in the risky fund with the remainder in cash. The Sharpe ratio of her optimal complete portfolio is: O 0.22 045 0.35 Can't tell from information provided. Need the return and risk of the optimal complete portfolio....
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