User Account

All Pages

Desired level of risk for joanne portfolio

Assignment Help Finance Basics
Reference no: EM133057418

You work as a portfolio manager for an investment fund. You have a meeting with one of your clients, Joanne Siegal, who wants to review her investment objectives. At present, Joanne holds a well-diversified portfolio of equity securities, but the market beta of her portfolio is higher than the market beta of the market portfolio. Joanne would like to reduce the risk exposure of her portfolio so that the market risk of her portfolio is lower than that of the market.

Based on your understanding of security market line (SML), explain the actions that you could take to achieve the desired level of risk for Joanne's portfolio. What are the possible consequences of those actions.

Reference no: EM133057418

Questions Cloud

Find firm weighted average cost of capital : The firm's required rate of return on equity is 25%. Their marginal tax rate is 25%. What is this firm's weighted average cost of capital (WACC)?
Hearing aid industry and the proposed transaction : Briefly describe Harmonic Hearing Co., the hearing aid industry and the proposed transaction.
What was the total of the current assets : What was the total of the current assets on Sam's separate statement of financial position at the time Pit acquired its 80% interest
Forecast net cash flow : Suppose that you have estimated a regression model that specifies ent cash flow as the dependent variable and sales as the independent variable.
Desired level of risk for joanne portfolio : Explain the actions that you could take to achieve the desired level of risk for Joanne's portfolio. What are the possible consequences of those actions.
Identify the behavioural bias : Identify the behavioural bias referred to in the above statement. Using a relevant market anomaly, briefly explain the behavioural bias you identified.
What dollar amount of suits should be purchased in november : Wild West Fashion expects the total costs of goods sold to be $39,000 in November and $69,000 in December. What dollar amount of suits should be purchased
Correlation coefficient in efficient diversification : Explain the significance of correlation coefficient in efficient diversification.
Cfa standard of professional conducts : Referring to the CFA standard of professional conducts applicable in this scenario, explain whether you and your friends are permitted to respond to client's pr

Reviews

Write a Review

Finance Basics Questions & Answers

  Yield to maturity of the bond rises

If the yield to maturity of the bond rises to 5.73% ?(APR with semiannual? compounding), at what price will the bond? trade?

  Determinants of mutual funds performance

Determinants of mutual funds performance a cross country analysis of south Asian countries.

  Calculate the current ratio the quick ratio and the nwc

Use year-end data to calculate the current ratio, the quick ratio, and the NWC to-total-assets ratio for 2009 and 2010 for Castillo Products. What changes occurred?

  Annual risk-free rate is 2 and the annual dividend yield

annual risk-free rate is 2 and the annual dividend yield on the sampp500 is 3. if the price of a 1-year futures

  Relationship between the price elasticity and total revenue

Explains the relationship between the price elasticity of demand and total revenue. It is highly recommended that you review the Seminar presentation located in the Seminar area before beginning the Discussion.

  The charter authorized the issuance of 500000 shares the

katz corporation has issued 400000 shares of common stock and holds 20000 shares in treasury. the charter authorized

  Calculate each project npv and irr

Set up a Project Δ by showing the cash flows that will exist if the firm goes with the large plant rather than the smaller plant. What are the NPV and the IRR for this Project Δ?

  Explain the concept of market efficiency in stock exchange

Explain the different sorts of risk to the financial intuitions. Explain the concept and difference between the future and forward Market.

  You own a portfolio that has 700 invested in alpha ltd and

you own a portfolio that has 700 invested in alpha ltd and 2 500 invested in better ltd. if the expected returns on

  Defining formula computation formula

Use the defining formula, the computation formula, or a calculator to compute s. (Enter your answer to one decimal place.)

  What is wacc why is it so important in business valuation

What is WACC? Why is it so important in business valuation? Please estimate WACC for Anheuser in 2008 using the Excel templateattached. In your estimation of cost of equity, use either CAPM or Dividend Discount Model but make sure to justify your mod..

  Disapprove of the twelve tables as a system of law today

Do you think most modern Americans would approve or disapprove of the twelve tables as a system of law today? Why or why not?

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