Effect your investments performance

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1. The market portfolio has an expected return of 18% and the risk-free rate is 6%. An investor borrows $100 at the risk-free rate and invests this and a further $100 of his own in the market portfolio. What is his expected return?

2. Suppose the direct spot quotation for £s in New york is 1.9618-78 and the direct spot for £s in London is .5076-9. Arbitrage profits per $1 million equal approximately (round off to the nearest one hundred dollars)

3. Your text lists 6 macro variables that might effect your investments performance. Choose one and explain in detail how it could impact the outcome of you investment.

Reference no: EM132045628

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