Determine the expected rate of return

Assignment Help Accounting Basics
Reference no: EM132863442

Question - Consider the following two investment opportunities: a stock fund and a bond fund with E(rS)=0.20, σS=0.21, E(rB)=0.12, σB=0.12. The correlation coefficient between the two funds is 0.10. Determine the expected rate of return of the minimum variance portfolio?

Reference no: EM132863442

Questions Cloud

What is Randy Cooking School net cash flow : Randy's Cooking School has an accrual basis net income of $189,000. What is Randy's Cooking School's net cash flow from operating activities
Department of homeland security : Discuss the responsibilities of the agencies located within the Department of Homeland Security.
Is Murray logic correct : He argues that he was awarded damages as a recovery of his human capital and that a recovery of capital is not income. Is Murray's logic correct
What market opportunities do you have : How many aircraft does your company have? How many routes do you serve? What market opportunities do you have
Determine the expected rate of return : The correlation coefficient between the two funds is 0.10. Determine the expected rate of return of the minimum variance portfolio
Describe how hypotheses are constructed and tested : Describe how hypotheses are constructed and tested.
Middle ages and one created during italian renaissance : Choose a work of art or architecture produced during the Middle Ages and one created during the Italian Renaissance.
Management approach to organizational behavior : Briefly define and distinguish between classical management approach to organizational behavior and the humanistic approach advanced by Chester Barnard.
Importance of moral conduct : The underwriters of Good Insurance Services know the importance of moral conduct in their professional endeavors. Moral conduct implies behavior based on which

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

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