You manage a risky portfolio with an expected rate of return of 19% and a standard...

Question

Question

You manage a risky portfolio with an expected rate of return of 19% and a standard...

You manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 34%. The T-bill rate is 8%.

Suppose that your client prefers to invest in your fund a proportion y that maximizes the expected return on the complete portfolio subject to the constraint that the complete portfolio’s standard deviation will not exceed 19%.

a. What is the investment proportion, y? (Round your answer to 2 decimal places.)

b. What is the expected rate of return on the complete portfolio?

business finance

Add a comment Improve this question Transcribed image text

Answer 1

✔ Recommended Answer

Answer #2

さ119nIsw.) 10.ssad23ess.ee zan

Add a comment

Answer 2

Answer #1

nswe九: 19.1. then 11ソ. С О. SS@d) 1Ч.IS t/-

Add a comment

Answer 3

Similar Homework Help Questions

You manage a risky portfolio with an expected rate of return of 18% and a standard...

You manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 31%. The T-bill rate is 4%. Suppose that your client prefers to invest in your fund a proportion y that maximizes the expected return on the complete portfolio subject to the constraint that the complete portfolio’s standard deviation will not exceed 18%. a. What is the investment proportion, y? (Round your answer to 2 decimal places.) b. What is the expected rate...
You manage a risky portfolio with an expected rate of return of 18% and a standard...

You manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 29%. The T-bill rate is 5%. Suppose that your client prefers to invest in your fund a proportion y that maximizes the expected return on the complete portfolio subject to the constraint that the complete portfolio's standard deviation will not exceed 18%. a. What is the investment proportion, y? (Round your answer to 2 decimal places.) Investment proportion y b. What is...
You manage a risky portfolio with an expected rate of return of 17%and a standard deviation of 28%. The T-bill rate is 7%.

You manage a risky portfolio with an expected rate of return of 17%and a standard deviation of 28%. The T-bill rate is 7%.Suppose that your client prefers to invest in your fund a proportion y that maximizes the expected return on the complete portfolio subject to the constraint that the complete portfolio's standard deviation will not exceed 17%.a. What is the investment proportion, y ? (Round your answer to 2 decimal places.)b. What is the expected rate of return on...

Problem 6-18 You manage a risky portfolio with an expected rate of return of 17% and...

Problem 6-18 You manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 38%. The T-bill rate is 6%. Suppose that your client prefers to invest in your fund a proportion y that maximizes the expected return on the complete portfolio subject to the constraint that the complete portfolio's standard deviation will not exceed 17% a. What is the investment proportion. Y? (Round your answer to 2 decimal places.) Investment proportion y b....
Assume that you manage a risky portfolio with an expected rate of return of 17% and...

Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate is 7%. A client prefers to invest in your portfolio a proportion (y) that maximizes the expected return on the overall portfolio subject to the constraint that the overall portfolio's standard deviation will not exceed 20%. a. What is the investment proportion, y? (Round your answer to 2 decimal places.) Investment proportion y...
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...

Assume that you manage a risky portfolio with an expected rate of return of 14%and a standard deviation of 38%

Assume that you manage a risky portfolio with an expected rate of return of 14%and a standard deviation of 38%. The T-bill rate is 4%. A client prefers to invest in your portfolio a proportion (y) that maximizes the expected return on the overall portfolio subject to the constraint that the overall portfolio's standard deviation will not exceed 25%.a. What is the investment proportion, y ? (Do not round Intermediate calculations. Round your answer to 2 decimal places.)b. What is the...
3) Assume that you manage a risky portfolio with an expected rate of return of 14%...

3) Assume that you manage a risky portfolio with an expected rate of return of 14% and standard deviation of 19%. The risk-free rate rate on a Treasury-bill is 6%. a. Your client chooses to invest 60% of a portfolio in your fund and 40% in a risk-free T-bill money market fund. What is the expected return and standard deviation of your client's portfolio? b. Suppose another investor decides to invest in your risky portfolio a proportion (w) of his...
You manage a risky portfolio with an expected rate of return of 18% and a standard...

You manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 29%. The T-bill rate is 8%. Your risky portfolio includes the following investments in the given proportions: Stock A 35 % Stock B 35 % Stock C 30 % Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 14%. a....

You manage a risky portfolio that has an expected return of 9% and a standard deviation...

You manage a risky portfolio that has an expected return of 9% and a standard deviation of returns of 12.5%. The T-bill rate is 3%. Your client wants to allocate her investment portfolio between your fund and T-bills to achieve an expected rate of return of 7%. What proportion of her portfolio should she allocate to the risky portfolio? What proportion to T-bills? What is the standard deviation of her portfolio? Another client wants to allocate his investment portfolio between...

You manage a risky portfolio with an expected rate of return of 19% and a standard...

Homework Answers

Add Answer to:
You manage a risky portfolio with an expected rate of return of 19% and a standard...

Post as a guest

Earn Coins

You manage a risky portfolio with an expected rate of return of 18% and a standard...

You manage a risky portfolio with an expected rate of return of 18% and a standard...

You manage a risky portfolio with an expected rate of return of 17%and a standard deviation of 28%. The T-bill rate is 7%.

Problem 6-18 You manage a risky portfolio with an expected rate of return of 17% and...

Assume that you manage a risky portfolio with an expected rate of return of 17% and...

Q2: A: Suppose that you manage a risky portfolio with an expected rate of return of...

Assume that you manage a risky portfolio with an expected rate of return of 14%and a standard deviation of 38%

3) Assume that you manage a risky portfolio with an expected rate of return of 14%...

You manage a risky portfolio with an expected rate of return of 18% and a standard...

You manage a risky portfolio that has an expected return of 9% and a standard deviation...

You manage a risky portfolio with an expected rate of return of 19% and a standard...

Homework Answers

Add Answer to: You manage a risky portfolio with an expected rate of return of 19% and a standard...

Post as a guest

Earn Coins

Add Answer to:
You manage a risky portfolio with an expected rate of return of 19% and a standard...