Suppose that youu currently have $250,000 invested in a portfolio with an expected return of 12%...
Suppose that youu currently have $250,000 invested in a portfolio with an expected return of 12% and a volatility of 10%. the efficient (tangent) portfolio has an expected return of 17% and a volatility of 12%. the risk-free rate of interest is 5%. the sharpe ratio for the efficient portfolio is closest to:
a) 1,0
b) 1,4
c) 0,7
d) 1,2
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Suppose that youu currently have $250,000 invested in a
portfolio with an expected return of 12%...
You currently have $55,000 invested in a portfolio that has an expected return of 11% and...
You currently have $55,000 invested in a portfolio that has an expected return of 11% and a volatility of 10%. Suppose the risk-free rate is 6%, and there is another portfolio has an expected return of 20% and a volatility of 13% a. What portfolio has a higher expected return than your portfolio but with the same volatility? b. What portfolio has a lower volatility than your portfolio but with the same expected return?
Thank you so much You currently have $150,000 invested in a portfolio that has an expected...
Thank you so much
You currently have $150,000 invested in a portfolio that has an expected return of 11% and a volatility of 9%. Suppose the risk-free rate is 4%, and there is another portfolio has an expected return of 16% and a volatility of 12%. a. What portfolio has a higher expected return than your portfolio but with the same volatility? b. What portfolio has a lower volatility than your portfolio but with the same expected return? a. What...
please work all parts. 2. Stock A has expected return of 14% and volatility 30%. Stock...
please work all parts.
2. Stock A has expected return of 14% and volatility 30%. Stock B has expected return of 8% and volatility 19%. The correlation between two stocks is -0.2. The risk free interest rate is 4% (a) Find the expected returns, volatilities, and Sharpe ratios of portfolios that maintain 100.0% investment in Stock A and 100(1-x)% in Stock B, where x is given in the following table. Volatility Expected return Sharpe ratio 0.8 0.9 1.0 (b) How...
In addition to risk-free securities, you are currently invested in the Tanglewood Fund, a broad-based fund...
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...
BMAN23000A (16) You currently own Facebook stock. Suppose that Facebook has an expected return of 18%...
BMAN23000A (16) You currently own Facebook stock. Suppose that Facebook has an expected return of 18% and a volatility of 15%. The market portfolio has an expected return of 11% and a volatility of 13%. The risk-free rate is 2%. Assuming the CAPM assumptions hold, you want to find an alternative portfolio with the lowest possible volatility and the same expected return as Facebook. The volatility of this portfolio is closest to: 13.2% Facebook 15% 18% 23.1% 17.6% subt onts...
15% Hulu) You currently have $125,000 invested in a portfolio that has an expected retum of...
15% Hulu) You currently have $125,000 invested in a portfolio that has an expected retum of 10% and a volatility of 10%. Suppose the risk troe rote la 5%, and there is another portfolio has an expected retum et 23% and a volatlly on a. What portfolio has a higher expected retum than your portfolio but with the same volatility b. What portfolio has a lower oily than your portfolio but with the same expected retum? 2. What portfolio has...
The risk-free rate is 0%. The market portfolio has an expected return of 20% and a volatility of 20%. You have $100 to invest. You decide to build a portfolio P which invests in both the risk-free investment and the market portfolio.
The risk-free rate is 0%. The market portfolio has an expected return of 20% and a volatility of 20%. You have $100 to invest. You decide to build a portfolio P which invests in both the risk-free investment and the market portfolio.a. How much should you invest in the market portfolio and the risk-free investment if you want portfolio P to have an expected return of 40%?b. How much should you invest in the market portfolio and the risk-free investment...
Q7-Consider the following combination of expected return and risk for various portfolios (named A-H) on the...
Q7-Consider the following combination of expected return and risk for various portfolios (named A-H) on the risk-return diagram. Assume a risk-free rate of 12% where one may borrow or lend at this rate. Expected Return (%) Risk (%) A 10 23 B 12.5 21 C D E F G H 15 16 17 18 18 20 25 29 29 32 35 45 Sharpe Ratio 1. Which of the above portfolios has the highest Sharpe ratio? (Must express in percentage) (5pts.)...
13. Consider a Market Portfolio with 12% expected return and 20% return standard deviation. If the...
13. Consider a Market Portfolio with 12% expected return and 20% return standard deviation. If the Sharpe ratio of the market portfolio is 0.5, what is the risk-free rate of return? (a) 0.01 (b) 0.02 (c) 0.03 (d) 0.04
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%.
You currently have $55,000 invested in a portfolio that has an expected return of 11% and a volatility of 10%. Suppose the risk-free rate is 6%, and there is another portfolio has an expected return of 20% and a volatility of 13% a. What portfolio has a higher expected return than your portfolio but with the same volatility? b. What portfolio has a lower volatility than your portfolio but with the same expected return?
Thank you so much
You currently have $150,000 invested in a portfolio that has an expected return of 11% and a volatility of 9%. Suppose the risk-free rate is 4%, and there is another portfolio has an expected return of 16% and a volatility of 12%. a. What portfolio has a higher expected return than your portfolio but with the same volatility? b. What portfolio has a lower volatility than your portfolio but with the same expected return? a. What...
please work all parts.
2. Stock A has expected return of 14% and volatility 30%. Stock B has expected return of 8% and volatility 19%. The correlation between two stocks is -0.2. The risk free interest rate is 4% (a) Find the expected returns, volatilities, and Sharpe ratios of portfolios that maintain 100.0% investment in Stock A and 100(1-x)% in Stock B, where x is given in the following table. Volatility Expected return Sharpe ratio 0.8 0.9 1.0 (b) How...
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...
BMAN23000A (16) You currently own Facebook stock. Suppose that Facebook has an expected return of 18% and a volatility of 15%. The market portfolio has an expected return of 11% and a volatility of 13%. The risk-free rate is 2%. Assuming the CAPM assumptions hold, you want to find an alternative portfolio with the lowest possible volatility and the same expected return as Facebook. The volatility of this portfolio is closest to: 13.2% Facebook 15% 18% 23.1% 17.6% subt onts...
15% Hulu) You currently have $125,000 invested in a portfolio that has an expected retum of 10% and a volatility of 10%. Suppose the risk troe rote la 5%, and there is another portfolio has an expected retum et 23% and a volatlly on a. What portfolio has a higher expected retum than your portfolio but with the same volatility b. What portfolio has a lower oily than your portfolio but with the same expected retum? 2. What portfolio has...
Q7-Consider the following combination of expected return and risk for various portfolios (named A-H) on the risk-return diagram. Assume a risk-free rate of 12% where one may borrow or lend at this rate. Expected Return (%) Risk (%) A 10 23 B 12.5 21 C D E F G H 15 16 17 18 18 20 25 29 29 32 35 45 Sharpe Ratio 1. Which of the above portfolios has the highest Sharpe ratio? (Must express in percentage) (5pts.)...
13. Consider a Market Portfolio with 12% expected return and 20% return standard deviation. If the Sharpe ratio of the market portfolio is 0.5, what is the risk-free rate of return? (a) 0.01 (b) 0.02 (c) 0.03 (d) 0.04
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