please help with step no excel :)
Homework Answers
In the given problem, volatility = 35% = 0.35
Risk fee rate = 5% = 0.05
Thus required rate of return = Square root of volatility * risk free interest rate = (Sq. root of 0.35) * 0.05 = 0.029 Ans.
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please help with step no excel :)
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In addition to nsk-free securities, you are currently invested in the Tanglewood Fund, a broad-based fund...
In addition to nsk-free securities, you are currently invested in the Tanglewood Fund, a broad-based fund o stocks and other securities than expected return o 12% and a volatility of 25%. Currently, the nsk-free rate terest is 4%. Your broker suggests that you add a venture capital und to your current portfolio. The venture capital fund has an expected return of 20%, a volatility of 80%, and a correlation of 0.2 with the Tanglewood Fund. Assume you follow your broker's...
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ANSWER ALL. fiund is considering three mutual funds. The first is a stock fund, the second is money market fund yielding 1%. The probability a bond fund, and the third is a Exsciod Retcn 10% 5% 12...
ANSWER ALL.
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how to solve this question? I want to know whether my solution is correct. <My solution>...
how to solve this question? I want to know whether my
solution is correct.
<My solution>
the 9.12% is the required return for venture capital
fund in the current portfolio of Tanglewood,
and the expected return of venture capital fund is
20%, so
20% > 9.12% makes it conclude that we should add
more venture capital funds in the portfolio.
11-38. In addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad- based fund of stocks...
The Bold part is the problem, and the non-Bold part is the solution. Why is the...
The Bold part is the problem, and the non-Bold part is the
solution.
Why is the solution like that? Please explain this solution!
11-38. In addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad- based fund of stocks and other securities with an expected return of 12% and a volatility of 25%. Currently, the risk-free rate of interest is 4%. Your broker suggests that you add a venture capital fund to your current portfolio. The...
Please show excel calculations, no handwritten answer. A pension fund manager is considering three mutual funds....
Please show excel calculations, no
handwritten answer.
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 8%. The probability distribution of the risky funds is as follows: Expected Return 22% 12 Standard Deviation 38% 16 Stock fund (S) Bond fund (B) The correlation between the fund returns is 0.10. a-1....
(15) You have invested only in the BlueChip Fund, a mutual fund that invests mainly in stocks. At the moment, the BlueChip Fund has a volatility of 32%. Your broker suggests that you add the GoldAll Fund to your current portfolio. The GoldAll Fund has a volatility of 35% and a correlation of -0.10 with the BlueChip Fund. Risk-free interest rate is equal to 5%. The required return on the GoldAll Fund is closest to: Volatility Comelation ВСЕ 3 .....
You are presently invested in the Luther Fund, a broad based mutual fund that invests in 7. (10 pts.) stocks and other securities. The Luther Fund has an expected return of 14% and a volatility of 20%. Risk-free Treasury bills are currently offering returns of 4%. You are considering adding a precious metals fund to your current portfolio. The metals fund has an expected return of 10%, a volatility of 30%, and a correlation of-20 with the Luther Fund. Will...
In addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad-based fund of stocks and other securities with an expected return of 12% and a volatility of 26%. Currently, the risk-free rate of interest is 5%. Your broker suggests that you add a venture capital fund to your current portfolio. The venture capital fund has an expected return of 21%, a volatility of 79%, and a correlation of 0.2 with the Tanglewood Fund. Assume you follow...
In addition to nsk-free securities, you are currently invested in the Tanglewood Fund, a broad-based fund o stocks and other securities than expected return o 12% and a volatility of 25%. Currently, the nsk-free rate terest is 4%. Your broker suggests that you add a venture capital und to your current portfolio. The venture capital fund has an expected return of 20%, a volatility of 80%, and a correlation of 0.2 with the Tanglewood Fund. Assume you follow your broker's...
40. You are currently only invested in the Natasha Fund (aside from risk-free securities). It has an expected return of 14% with a volatility of 20%. Currently, the risk-free rate of interest is 3.8%. Your broker suggests that you add Hannah Corporation to your portfolio. Hannah Corporation has an expected return of 20%, a volatility of 60%, and a correlation of 0 with the Natasha Fund. a. Is your broker right? b. You follow your broker's advice and make a...
ANSWER ALL.
fiund is considering three mutual funds. The first is a stock fund, the second is money market fund yielding 1%. The probability a bond fund, and the third is a Exsciod Retcn 10% 5% 12% Stock Fund (S) Bond Fund (B) The correlation between the fund returns is 0.10 (ie. negative). 30. Calculate the wcights on socks (mu) and bonds (m) associated with the Minimum b, (w-74% , w -26%) d. (we-28%, w-72%) the expected return for a...
how to solve this question? I want to know whether my
solution is correct.
<My solution>
the 9.12% is the required return for venture capital
fund in the current portfolio of Tanglewood,
and the expected return of venture capital fund is
20%, so
20% > 9.12% makes it conclude that we should add
more venture capital funds in the portfolio.
11-38. In addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad- based fund of stocks...
The Bold part is the problem, and the non-Bold part is the
solution.
Why is the solution like that? Please explain this solution!
11-38. In addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad- based fund of stocks and other securities with an expected return of 12% and a volatility of 25%. Currently, the risk-free rate of interest is 4%. Your broker suggests that you add a venture capital fund to your current portfolio. The...
Please show excel calculations, no
handwritten answer.
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 8%. The probability distribution of the risky funds is as follows: Expected Return 22% 12 Standard Deviation 38% 16 Stock fund (S) Bond fund (B) The correlation between the fund returns is 0.10. a-1....
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