Determining the expected return

Assignment Help Macroeconomics
Reference no: EM131083183

A portfolio consists 20% of a risk-free asset and 80% of a stock. The risk-free return is 4%. The stock has an expected return of 15% and a standard deviation of 30%. What's the expected return? Show your working as well.

Reference no: EM131083183

Questions Cloud

Calculate the equivalent mass of the acid : Calculate the equivalent mass of the acid.
Current healthcare plan came up for an employee vote : If you worked at WFM, how would you vote when the company's current healthcare plan came up for an employee vote? Explain your reasoning.
Calculate the amount of ce4+produced from the electrolysis : Plot the curve of system potential versus electrolysis time.
Combat poverty in developing countries : List down the policy measures that may be implemented to combat poverty in developing countries.
Determining the expected return : A portfolio consists 20% of a risk-free asset and 80% of a stock. The risk-free return is 4%. The stock has an expected return of 15% and a standard deviation of 30%. What's the expected return? Show your working as well.
Prepare the appropriate individual tax return : Using the information above and information from each part of the course project complete the tax returns for James and Pamela Brock and William Brock. Please prepare the appropriate individual tax return including Schedule A, Schedule C and Schedu..
Determine the average mass of s2- (ng) : Determine the average mass of S2- (ng), the standard deviation, and the % RSD of each standard.
Knowledge economy and knowledge worker : Haven’t there always been “knowledge” workers, people who do more than what a robot could do? Why, then, has such a big deal been made of the “knowledge economy” and the “knowledge worker” in recent years?
Estimate the value of this option using a binomial tree : Consider a CBOE S&P index call option that has a strike price of 2000 and a time to maturity of 6 months. Calculate the value of this option using the Black-Scholes-Merton formula

Reviews

Write a Review

Macroeconomics Questions & Answers

  Explore how a firm determines the optimal scale of a plant

Explore how a firm determines the optimal scale of a plant for a given rate of output and why this determination relates to longer run strategies versus current operations. Also, discuss the differences between economies of scale and economies of ..

  Negative production externality

1. Consider a competitive market with a PMB = 22 - q and a PMC = 10 +q. There is a negative production externality of e = q, where q is the level of output in the market, the government can achieve the efficient level of output by

  Determine nation frictional unemployment rate

Assume that nation has a labor force of 100 people. In January, Amy, Barbara, Carine, and Denise are unemployed, in February, those four find jobs, but Evan, Francesco, George, and Horatio become unemployed.

  What is the adjustment process that drives economy

Industrial organization or market structure refers to the characteristics of a market or industry, such as the type(s) of product, number and size of firms, ease of entry into industry, cost of exiting, independence of action etc.

  Promoting economic growth and development

Assess President Obama and the Congressional Majority Democrats' stimulus, budgetary, and health care initiatives in the context of promoting Economic Growth and Development.

  The present spot exchange rate and the exchange rate.

The present spot exchange rate is $1.55/£ and the 3M forward rate is $1.50/£. On the basis of your analysis of the exchange rate.

  Causes of the stagflation

What were some of causes of stagflation of 1973 and 1979? In what ways were these episodes of stagflation different from great depression of the 1930s?

  Explanation of how removing subsidy

Using the tools of analysis developed in this course, demonstrate that removing the subsidy will make consumers worse off but will nevertheless improve society economic welfare.

  Determine whta is the quantity of the good sold

Suppose the government removes a tax on buyers of a good and levies a tax of the same size on sellers of a good. How does this change in tax policy affect the price that buyers pay sellers for this good, the amount buyers are out of pocket includi..

  When is international trade an opportunity for workers

The problem belongs to Economics, mainly to Macroeconomics and the problem deals with the opportunities and threats that workers face with international trade.

  How much of the deficit was monetized

Suppose that the federal government’s annual budget deficit is $250 billion and that the Fed’s holdings of government securities increase by $10 billion over the year. How much of the deficit was monetized?

  Explain specific effects of price controls at given prices

Identify and explain specific effects of price controls at given prices. Using the hypothetical information in the table on the market for gasoline, complete the following questions: Price of Gasoline (per gallon) Quantity Demanded

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