User Account

All Pages

Calculate the optimal risky portfolio

Assignment Help Business Management
Reference no: EM131415491

There are only 6 investments available: 1) Stock Fund M, Expected Return = 25%, Standard Deviation = 32%; 2) Stock Fund R, Expected Return = 39%, Standard Deviation = 67%; 3) T-bills, Expected Return = 4%.  Note that the correlation coefficient between funds M and R is .1.

A) Calculate the optimal risky portfolio and its expected return and standard deviation.

B) Find the slope of the CAL supported by T-bills and the optimal portfolio.

C) What percentage of their assets will an investor with M=5 invest in Funds M and R? What percentage will they invest in T-bills?

D) What percentage of their TOTAL ASSETS will the investor in part C have invested in Fund M?

Reference no: EM131415491

Questions Cloud

Describe some of the features of the curriculum : It has become the company's global center of excellence for McDonald's operations training and leadership development.Describe some of the features and characteristics of the curriculum, students, and university facility.
Constructive or destructive- if build our home in the valley : Identify the following dilemmas as either constructive or destructive. Then suggest a refutation for each by escaping between the horns, grasping by the horns, or constructing a counterdilemma.
Compute the year-end warranty liability : Assume that the cars were sold for cash for an average of $9,500. Prepare the entry to record the car sales during 2011 (combine all the sales and make one entry).
Examine the challenges for unions and employers : Discuss some employer tactics used to prevent or minimize union membership growth prior to the passage of the National Labor Relations Act in 1935. Which, if any, of these tactics would be lawful today? Why, or why not? Examine the challenges for ..
Calculate the optimal risky portfolio : A) Calculate the optimal risky portfolio and its expected return and standard deviation. B) Find the slope of the CAL supported by T-bills and the optimal portfolio.
Explain the existence of crime in society : Explain the existence of crime in society. Once the causes of crime are identified, specific actions (crime control policy) can be taken by social control agents to control and reduce criminal behavior. For example, rational choice theory suggests..
How insurance mandate in affordable care act affect business : If you are a business major, how does the insurance mandate in the Affordable Care Act affect local, state, and national businesses and their employees?
Operates in a competitive market : Question 1: Suppose the company Domino's produces pizza (Good X) and operates in a competitive market and uses cheeses as its main input. What would happen to the supply of good X in each of the following situations.
Discuss the value a performance management program : As the new HR manager, you have conducted an analysis of your organization and found that performance management processes are highly inconsistent among departments. There are no ties to organizational goals, and departments are free to determine ..

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd