Question

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An optimal risky portfolio has been developed with investments in stocks and bonds This optimal portfolio has 24% invested in bonds and the remainder invested in stocks The optimal portfolio mean return is 12.05% and its standard deviation is 18.45% The t-bill rate is 4.75%; what is the mean of the complete portfolio if 33% is invested in the optimal portfolio and theremainder is invested in T-bills? a What is the resulting allocation to stocks and bonds in this complete portfolio? b Calculate the Sharpe ratio for the complete portfolio lease showall computations Il a Express Excess return on a security in terms of Beta firm specificrisk alpha Ascatter diagram for D Corp shows observations of annual returns over a ten year period The Security characteristicLine [regression line] for D Corp shows the following Beta Alpha 1.25 3.25% If the market excess return is 17%, what is the expected return for D Corp? C Observation J shows an actual return of 25.25% when the market excess return is 17%. Comment on this finding RISK RETURN TRADEOFF WITH TWO RISKY ASSETS PORTFOLIOS EIRb] Sdevn b EIRS Sdevns Corr coeff 5.50% 7.85% b-bond fund s stock fund p portfolio with two risky assets 19.25% 0.22 Investor considering 45% stocks and 55% bonds Calculate b Portfolio Sdevn- assign 2