Complete portfolios expected return

Assignment Help Financial Management

Reference no: EM131300325

Risky asset: E(rp)=17%, Std Devp = 27%

Risk free asset: rf = 7%

y=70% (i.e., complete portfolio has 70% allocation in risky asset p)

(a) Complete Portfolio’s Expected Return?

(b) Complete Portfolio’s Standard Deviation?

Reference no: EM131300325

Questions Cloud

Prepared to make monthly payments-beginning at end of month : You’re prepared to make monthly payments of $220, beginning at the end of this month, into an account that pays 8 percent interest compounded monthly. How many payments will you have made when your account balance reaches $59,000?

True of the north american free trade agreement : Which of the following organizations was created in 1995 by the Uruguay Round and is based in Geneva, Switzerland? Which of the following is true of the North American Free Trade Agreement (NAFTA)? From the perspective of the United States, the proce..

How much should she deposit in a savings account : Excited about your pending birth, your grandmother plans to give you $750 for a present on your birthday when you turn 18. How much should she deposit in a savings account when you are born to generate your future present? The savings account pays 3%..

Assuming no transaction costs : You have the opportunity to buy the right to be paid $600 every 6 months for the next 3 years with an interest rate of 3.6 percent compounded semiannually. At what price do neither you nor the seller make any money on this deal, assuming no transacti..

Complete portfolios expected return : Complete Portfolio’s Expected Return? Complete Portfolio’s Standard Deviation? Risky asset’s Sharpe ratio? Complete Portfolio’s Sharpe ratio?

Foreign bond with the same risk and maturity characteristics : Suppose that spot and forward exchange rates are measured in units of domestic currency per unit of foreign currency. There is a positive forward premium for the domestic currency. If covered interest parity holds, what should be true of the differen..

What is effective annual rate : Ricky Ripov’s Pawn Shop charges an interest rate of 16.5 percent per month on loans to its customers. Like all lenders, Ricky must report an APR to consumers. What rate should the shop report? What is the effective annual rate?

What is change in price the bond will experience in dollars : A 6.80 percent coupon bond with 14 years left to maturity is priced to offer a 7.5 percent yield to maturity. You believe that in one year, the yield to maturity will be 7.1 percent. What is the change in price the bond will experience in dollars?

What is your after tax rate of return : Suppose you invest $100 today, your return for the year is $25, and your tax rate is 20%. what is your before tax rate of return? how much money did you earn after taxes? what is your after tax rate of return?

User Account

All Pages