Angela's portfolio is made up of three asset classes: 10% cash or cash equivalent assets averaging...
Angela's portfolio is made up of three asset classes: 10% cash or cash equivalent assets averaging 1% return 50% Stock averaging 11% annual return 40% Bonds averaging 4% annual return What is the total estimated portfolio return? Please write down your answer in percentage terms, for example if your answer is 7.5%, then please write down 7.5 as your answer.
Homework Answers
Ans 7.2
| ASSET CLASS | Probability (P) | RETURN (Y) | (P * Y ) |
| CASH OR CASH EQUIVALENT | 10% | 1% | 0.10% |
| STOCK | 50% | 11% | 5.50% |
| BONDS | 40% | 4% | 1.60% |
| TOTAL | 7.20% |
Add Answer to:
Angela's portfolio is made up of three asset classes: 10% cash
or cash equivalent assets averaging...
Brad's portfolio is made up of two asset classes: 40% Stock averaging 14% annual return 60%...
Brad's portfolio is made up of two asset classes: 40% Stock averaging 14% annual return 60% Bonds averaging 5% annual return What is the total estimated portfolio return?
E8-4 Your portfolio has three asset classes. U.S. government T-bills account for 45% of the portfolio,...
E8-4 Your portfolio has three asset classes. U.S. government T-bills account for 45% of the portfolio, large-company stocks constitute another 40%, and small-company stocks make up the remaining 15%. If the expected returns are 3.8% for the T-bills, 12.3% for the large-company stocks, and 17.4% for the small-company stocks, what is the expected return of the portfolio?
The original asset allocation of an investment portfolio was 10% cash, 40% bonds, and 50% stocks....
The original asset allocation of an investment portfolio was 10% cash, 40% bonds, and 50% stocks. A recent bear market, however, has altered this allocation to 10% cash, 50% bonds, and 40% stocks. The client's investment objectives and risk tolerance have not changed. The adviser recommends that the portfolio be systematically rebalanced by selling: A) Stocks and buying bonds with the proceeds B) Bonds and buying stocks with the proceeds C) Stocks and bonds and placing the proceeds in cash...
You want to construct a portfolio with the following three assets: $ invested b1 b2 Asset...
You want to construct a portfolio with the following three assets: $ invested b1 b2 Asset X $1,000 0.1 1.8 Asset Y $2,460 2.3 0.3 Asset Z $6,320 0 0 What is hte expected return of this portfolio, if assets with no risk yield 3.0% and the risk premiums for factors 1 and 2 are 4.3% and 7.8%, respectively? Answer in percentage without the symbol.
Problem 10-5 Nominal versus Real Returns [LO 2] Consider the following information on different asset classes...
Problem 10-5 Nominal versus Real Returns [LO 2] Consider the following information on different asset classes from 1926 through 2011. Arithmetic Mean 11.8% 16.5 6.4 Series Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds Intermediate-term government bonds U.S. Treasury bills Inflation 6.1 5.5 3.6 3.1 Required: (a) What was the arithmetic average annual return on large-company stocks in nominal terms? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)...
Risk and return Suppose Yvette is choosing how to allocate her portfolio between two asset classes:...
Risk and return Suppose Yvette is choosing how to allocate her portfolio between two asset classes: risk-free government bonds and a risky group of diversified stocks. The following table shows the risk and return associated with different combinations of stocks and bonds. Combination Fraction of Portfolio in Diversified Stocks Average Annual Return Standard Deviation of Portfolio Return (Risk) (Percent) (Percent) (Percent) A 0 2.00 0 B 25 4.50 5 C 50 7.00 10 D 75 9.50 15 E 100 12.00...
You are managing an investment portfolio X on behalf of your clients. Assume the assets within...
You are managing an investment portfolio X on behalf of your clients. Assume the assets within portfolio X belong to three asset classes: stocks, fixed income and cash, with weights 60%, 9% and 31%. Suppose the benchmark index weights had been set at 65% equity, 18 % bonds and 17% money market. Question 2 (8 marks) The return of the benchmark index and the managed portfolio X for each asset class for last year were as follows Benchmark Index Portfolio...
please help stuck a. What are her expected returns and the risk from her investment in the three assets? How do they compare with invessing in asset M alone? Hint Find the standard...
please help stuck
a. What are her expected returns and the risk from her investment in the three assets? How do they compare with invessing in asset M alone? Hint Find the standard deviations of asset M and of the portiolio equally investe assets M, N, and O b. Could Sally reduce her total risk even more by using assets M and N only, assets M and O only, or assets N and O only? Use a 50/50 spit between...
You have been asked for your advice in selecting a portfolio of assets and have been...
You have been asked for your advice in selecting a portfolio of assets and have been supplied with the following data: You have been told that you can create two portfolios-one consisting of assets A and B and the other consisting of assets A and C-by investing equal proportions (50%) in each of the two component assets. a. What is the average expected return, r, for each asset over the 3-year period? b. What is the standard deviation, s, for...
please help and show your work! Consider a market model with three assets: two risky assets...
please help and show your work!
Consider a market model with three assets: two risky assets (#1 and #2) and one risk-free asset (#3). The risk-free rate of interest is r = 3%. The parameters of the risky returns are as follows: 02 = 15%, Mi = 6%, H2 = 9%, 01 = 10%, P12 = -10%. 1. Let u(x) and g(x) with xe (-0,00) denote, respectively, the expected return and volatility of my portfolio if I allocate 100x% of...
Problem 10-5 Nominal versus Real Returns [LO 2] Consider the following information on different asset classes from 1926 through 2011. Arithmetic Mean 11.8% 16.5 6.4 Series Large-company stocks Small-company stocks Long-term corporate bonds Long-term government bonds Intermediate-term government bonds U.S. Treasury bills Inflation 6.1 5.5 3.6 3.1 Required: (a) What was the arithmetic average annual return on large-company stocks in nominal terms? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)...
You are managing an investment portfolio X on behalf of your clients. Assume the assets within portfolio X belong to three asset classes: stocks, fixed income and cash, with weights 60%, 9% and 31%. Suppose the benchmark index weights had been set at 65% equity, 18 % bonds and 17% money market. Question 2 (8 marks) The return of the benchmark index and the managed portfolio X for each asset class for last year were as follows Benchmark Index Portfolio...
please help stuck
a. What are her expected returns and the risk from her investment in the three assets? How do they compare with invessing in asset M alone? Hint Find the standard deviations of asset M and of the portiolio equally investe assets M, N, and O b. Could Sally reduce her total risk even more by using assets M and N only, assets M and O only, or assets N and O only? Use a 50/50 spit between...
You have been asked for your advice in selecting a portfolio of assets and have been supplied with the following data: You have been told that you can create two portfolios-one consisting of assets A and B and the other consisting of assets A and C-by investing equal proportions (50%) in each of the two component assets. a. What is the average expected return, r, for each asset over the 3-year period? b. What is the standard deviation, s, for...
please help and show your work!
Consider a market model with three assets: two risky assets (#1 and #2) and one risk-free asset (#3). The risk-free rate of interest is r = 3%. The parameters of the risky returns are as follows: 02 = 15%, Mi = 6%, H2 = 9%, 01 = 10%, P12 = -10%. 1. Let u(x) and g(x) with xe (-0,00) denote, respectively, the expected return and volatility of my portfolio if I allocate 100x% of...
Most questions answered within 3 hours.
-
Rice Products in Bangladesh
Business behavior is derived in large part from the basic cultural
environment...
asked 47 minutes ago -
The following base sequence is found for a mRNA fragment from
wild-type E. coli: 5'- UAUCAGUAGAUAAUGUAACC-3'...
asked 1 hour ago -
For this exercise, round all regression parameters to three
decimal places.
One of the two tables...
asked 1 hour ago -
What is the 5% level of significance for mean = 3.60, standard
deviation = 0.94, and...
asked 1 hour ago -
Prior to beginning work on this discussion, please read the
article by Hayley Peterson, 15 Companies...
asked 2 hours ago -
Which pair of aqueous solutions, when mixed, will form a
precipitate?
A) NaNO3 and AgC2H3O2
B)...
asked 2 hours ago -
1-Write an algorithm to get two numbers from the user (as
inputs) and calculate the sum...
asked 5 hours ago -
Define white-collar crime. What is the difference between
offender and offense-based definitions of white-collar crime? What...
asked 6 hours ago -
Consider a reaction which is 1st order with respect to A and 1st
order with respect...
asked 6 hours ago -
c++
The length of the hypotenuse of a right-angled triangle is the
square root of the...
asked 6 hours ago -
When a metal rod is heated, not only its resistance but also its
length and crossâsectional...
asked 6 hours ago -
write a c++ program that computes the L^1 - Norm of a given
vector (L^1 norm...
asked 6 hours ago