Compute the approximation to the geometric mean

Assignment Help Financial Management

Reference no: EM132051121

1. A client has $2m to invest for retirement. She wants to take out $120,000 per year. Her portfolio has an expected return equal to 5% with a standard deviation equal to 8%. Compute the approximation to the geometric mean. Using the geometric mean approximation, how long is it expected to last?

2. Given the following values, compute the Sharpe, Treynor, and Sortino ratios. Average return=9%, risk-free rate=2%, beta=1.1, standard deviation=21%, downside deviation=14%.

3. Unlevered mean and standard deviation: 8%, 15%.

If the borrowing rate is 4%, what is the mean and standard deviation of a portfolio where the investor has $15,000 equity and borrows $10,000 for a total investment of $25,000?

Reference no: EM132051121

Questions Cloud

The essential drucker by peter drucker about : What is the book "The Essential Drucker", by Peter Drucker about?

Differences between the federal deficit and federal debt : What are the differences between the Federal deficit and Federal Debt? How does a government budget deficit affect the economy

Presentation to a multiple-perspective audience : How much of the opposing side should you share in a presentation to a multiple-perspective audience, and what techniques would you use?

How is the price of an asset determined : How is the price of an asset determined according to the standard asset pricing theory? (You may assume that investors hold on to the stock indefinitely.)

Compute the approximation to the geometric mean : Her portfolio has an expected return equal to 5% with a standard deviation equal to 8%. Compute the approximation to the geometric mean.

Analyze the structure of an organization : Analyze the structure of an organization, as well as any trends it may be experiencing and the external pressures it faces.

Was president carter correct in his assessment : Was President Carter correct in his assessment of the positive effects on the dollar of the higher interest rates? Explain.

Analyze the general computer controls and application : Analyze the general computer controls (GCC) and application controls of an E-commerce website that you use frequently or are otherwise familiar with.

What is the cost of capital : Presley Cleaners has an all-equity capital structure with an equity value of $64,100. The expected earnings are $8,900 based on estimated sales of $60,000.

User Account

All Pages