ANSWER:
FREE FEEL TO ASK ANY DOUBTS IN BELOW COMMENT
PLS RATE ME
5 Consider a Treasury bill with a rate of return of 5% and the following risky...
Consider a Treasury bill with a rate of return of 5% and the following risky securities: Security A: E(r) = .15; variance = .0400 Security B: E(r) = .10; variance = .0225 Security C: E(r) = .12; variance = .1000 Security D: E(r) = .13; variance = .0625 The investor must develop a complete portfolio by combining the risk-free asset with one of the securities mentioned above. The security the investor should choose as part of her complete portfolio to...
D Question 12 1 pts Consider a Treasury bill with a rate of return of 5% and the following stocks: Stock A: El. 15:09-0400, Stock B: E(r)-13; 02-0225, Stock C:E()-10; 02-0169. The investor must develop a complete portfolio by combining the risk-free asset with one of the stocks. The stock the investor should choose to achieve the best CAL would be None of the above. Stock B O Stock Stock • Previous Next
Your client invests in $10,000 in aT-bill with rate of return of 5% and a risky asset with an expected rate of return of 1196 and a variance of 496" He wants a portfolio that has an expected outcome of $11,500. The portfolio can be formed by Select one: O a. Investing $6,700 in the risky asset and $3,300 in the riskless asset. O b. Borrowing $6,700 at the risk-free rate and investing $6,700 in the risky asset Oc. Borrowing...
12. An investor invests 40% of his wealth in a risky asset with an expected rate of return of 15% and a variance of 0.04 and 60% in a treasury bill that pays 6%. Her portfolio's expected rate of return is and her portfolio return's standard deviation is 1) 8.0%, 12% 2) 9.6%, 8% 3) 11.4%, 10% 4) 13%, 12% moto of 4% One year
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...
answers in decimals please Intro Suppose that you manage a portfolio of risky assets with a standard deviation of 27% and an expected return of 15%. Your portfolio consists of the following investments: Type Stock A Stock B Stock C Stock D Weight 29% 17% 12% 42% The Treasury bill rate is 9%. An investor wants to invest a proportion of their investment budget in the T-bill and the remaining proportion in your fund. Part 1 |_ Attempt 3/5 for...
you invest in a risky asset with an expected rate of return of 0.17 and a standard deviation of 0.,40 and a T-bill with a rate of return of 0.04. what percentages of your money must be invested in the risky asset and the risk-free asset, respectively, to form a portfolio with an expected return of 0.11? a. 53.8% and 46.2% b.75% and 25% c.62.5% and 37.5% d.46.2% and 53.8%
Consider two perfectly negatively correlated risky securities, A and B. Security A has an expected rate of return of 16% and a standard deviation of return of 20%. B has an expected rate of return of 10% and a standard deviation of return of 30%. The weight of security B in the minimum-variance portfolio is? Please show all work.
The risk-free rate is 5%. A risky portfolio has an expected return of 10% and a standard deviation of return of 20%. If you want to form a complete portfolio from these two assets, and you want this portfolio to have an expected return greater than 5% but less than 10% what must you do? Assume that all borrowing and lending can be done at the risk-free rate. a. Lend at the risk free rate b. borrow at the risk...
You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 40% and 60%, respectively. X has an expected rate of return of 0.12 and variance of 0.0081, and Y has an expected rate of return of 0.09 and a variance of 0.0016. The coefficient of correlation, rho,...