Your financial adviser provided you with the following data about combinations of a Technology and a...
Your financial adviser provided you with the following data about combinations of a Technology and a Utility fund:
|
E(r) |
σ |
weight invested in Technology fund |
weight invested in Utility fund |
|
|
ORP |
16 |
22 |
40 |
60 |
|
MVP |
14 |
20 |
80 |
20 |
Your risk aversion coefficient is A=4 and the risk free rate is 2%.
If you have $1000, how much money do you need to invest in the Technology fund to maximize your utility?
Provide your answer in dollars rounded to two decimals, without the $ sign.
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Your financial adviser provided you with the following data
about combinations of a Technology and a...
Your financial adviser provided you with the following data about combinations of a Technology and a...
Your financial adviser provided you with the following data about combinations of a Technology and a Utility fund: E(n) weight invested in Technology fund 40 weight invested in Utility fund 60 20 ORP 16 22 MVP 14 20 80 Your risk aversion coefficient is A-4 and the risk free rate is 2%. If you have $1000, how much money do you need to invest in the Technology fund to maximize your utility? Provide your answer in dollars rounded to two...
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Your financial adviser provided you with the following data about combinations of a Technology and a Utility fund: E(n) weight invested in Technology fund 40 weight invested in Utility fund 60 20 ORP 16 22 MVP 14 20 80 Your risk aversion coefficient is A-4 and the risk free rate is 2%. If you have $1000, how much money do you need to invest in the Technology fund to maximize your utility? Provide your answer in dollars rounded to two...
You are considering investing in one of Fidelity's mutual funds. Based on the information provided in the prospectus, you believe the expected return of this Fidelity fund is 0.16 and its expected standard deviation is 0.3. Assume Treasury bill (risk-free security) currently returns 0.03 per year and you have estimated that your risk aversion coefficient, A, is 6. What is the optimal weight, y*, of this Fidelity mutual fund (risky portfolio) in your final complete portfolio? (The optimal weight refers...
3. You are evaluating two investment alternatives. One is a passive market portfolio with an expected return of 10% and a standard deviation of 16%. The other is a fund that is actively managed by your broker. This fund has an expected return of 15% and a standard deviation of 20%. The risk-free rate is currently 7%. Answer the questions below based on this information. a. What is the slope of the Capital Market Line? b. What is the slope...
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You just won a $100,000 lottery and plan to invest it among the
following alternatives:
You want to invest this $100,000 in such a way to maximize your
return from investment (in terms of dollars) one year from now,
while meeting the following guidelines:
• You must invest at least $20,000 in GF, and at most $30,000 in
EF.
• The amount invested in CD should be at least as much as the
amount invested in GF.
• No more...
PLEASE PROVIDE THE STEPS TO SOLVE THE PROBLEM. THANK YOU SO
MUCH!
Check my work Greta, an elderly investor, has a degree of risk aversion of A= 5 when applied to return on wealth over a one-year horizon. She is pondering two portfolios, the S&P 500 and a hedge fund, as well as a number of 1-year strategies. (All rates are annual and continuously compounded.) The S&P 500 risk premium is estimated at 6% per year, with a SD of...
risk friendly / risk-averse
would / would not
greater than / less than
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