Estimate the expected returns and standard deviation

Assignment Help Business Management
Reference no: EM132956576

The risk-free rate is 1.29%. The US equity markets have expected returns of 8.5% and the corresponding standard deviation of 20%. The Indian equity markets are expected to return 23% at a standard deviation of 31%. You estimated the correlation between the markets to be 0.28. A client would like to allocate 20% to risk-free, 50% to US equities and 30% to Indian equities. Both expected returns and standard deviations are annualized. Estimate the expected returns and standard deviation of your client's portfolio

Reference no: EM132956576

Questions Cloud

Estimate the irr for investment : You have been given the following cashflows for Zscaler in millions 0 1 2 3 4
What selling price per unit of product must charge : If Divine DVDs' direct labour costs do increase by 10 per cent, what selling price per unit of product must charge to maintain same contribution margin ratio.
Global financial crisis about financial liberalization : What have we learned from the East Asian financial crisis and the Global Financial Crisis about financial liberalization and financial stability?
Discuss cryptocurrency-digital money : Discuss cryptocurrency/digital money and its influence on how investing is changing. Also, discuss any personal experiences you have had investing in cryptocurr
Estimate the expected returns and standard deviation : The risk-free rate is 1.29%. The US equity markets have expected returns of 8.5% and the corresponding standard deviation of 20%. The Indian equity markets are
Calculate return on equity under each of economic scenarios : RAK, Inc., has no debt outstanding and a total market value. Calculate return on equity (ROE) under each of three economic scenarios before any debt is issued.
Recommendation for announcing mergers and acquisitions : What would be your recommendation for announcing mergers and acquisitions to help the company
What is the value of a put on the firm assets : 1) A zero-coupon bond with a 6-year maturity and a face value of $1000 has a market value of $796. What is the bond's YTM? Enter your answer as a percentage num
What is the conditional marginal probability : 1) Suppose that the market expects that there is a 20% chance a borrower will default and the recovery is expected to be 43%. Assume the premium for the CDS on

Reviews

Write a Review

Business Management Questions & Answers

  Questions in regards to healthcare economics

Need some advice on with the following questions in regards to Healthcare Economics. Please cite any references used to formulate any advice

  Communicate information to the organization

How effectively does your organization use technology to communicate information to the organization? What is done well? What can be improved?

  How to make a strategy so that the business coñtinues

How to make a strategy so that the business coñtinues to run well and keep customers.

  Provide a clear and concise summary of the given article

Provide a clear and concise summary of the article, including the major points and conclusions. How the cited work relates to your above explanation AND how it relates specifically to the content of the assigned module/week.

  What role does mentoring have in career success

What is the impact of goal setting on motivation and success? What role does mentoring have in career success.

  Explain what are the characteristics of effective teams

What are the characteristics of effective teams? How do roles, needs, and diversity affect teamwork? Provide specific examples. What are components of group diversity?

  What inventory method you think would be best for company

The choice of inventory method is critical to the merchandising operation. Identify a well-known company, and state what inventory method you think would be best for that company, and why.

  Difference between SNF vs Acute Care

What's the difference between a SNF vs Acute Care. than just SNF to just dealing with skilled nursing facility

  Looking at the concepts of job redesign

Looking at the concepts of job redesign and how that can be used to both make positions more efficient and effective for organizations

  Define consumer behavior

Develop a 10- to 12-slide Microsoft® PowerPoint® presentation, with notes on each slide, in which you relate consumer behavior and social media influence.

  What is the total market value of common stocks

A firm has 10,000,000 shares of common stock outstanding, each with a market price of $15.00 per share. It has 80,000 bonds outstanding, each selling for $1020.

  What are some variable costs for a 5k road race

What are some variable costs for a 5k road race?

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