Expected return-standard deviation of your clients portfolio

Assignment Help Financial Management
Reference no: EM131300829

Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate is 7%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. What is the expected return and standard deviation of your client's portfolio?  

Please Show Work

Reference no: EM131300829

Questions Cloud

What is your initial reaction to your credit report : What is your initial reaction to your credit report? Describe any surprising elements you noted in the report. 2. Which elements in your report do you think would have a positive impact on your credit score and which elements would have a negative ..
Discuss about the project stakeholders : Discuss about the Project Stakeholders.Stakeholders, as the name implies, have a stake in the project. Their interest might be large or small compared to other stakeholders.
Mutual fund and what is the expected return : Assume that you manage a mutual fund with an expected rate of return of 18% and a standard deviation of 34%. The T-bill rate is 5.5%. An investor wants to invest in your fund and T-bills such that the standard deviation of the investor’s total portfo..
Wealth in a portfolio with standard deviation : How much will an investor allocate to O, if she demands a risk premium of 50% to invest all her wealth in a portfolio with a standard deviation of 15%? O offers a risk premium of 12% and its standard deviation is 30%.
Expected return-standard deviation of your clients portfolio : Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 27%. The T-bill rate is 7%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. What is the e..
Discussion of modigliani and miller irrelevance theory : In 1-2 Pages Justify alternative dividend policies a company can employ and relate your discussion to Modigliani and Miller's irrelevance theory
Discuss the company corporate-level strategy : Define and discuss the company's corporate-level strategy. What are the benefits and/or shortcomings of Starbucks' diversified portfolio?
Influence of these events on bananaland''s labor market : Bananaland encourages anyone with $1 million to immigrate. Explain the influence of these events on Bananaland's labor market and land market.
Explain the main purpose of a quality management plan : Explain the main purpose of a quality management plan? What are two metrics - besides those provided in this chapter - that Kristin and her team could use on the Just-In-Time training project? Besides ensuring that classrooms are ready for trainin..

Reviews

Write a Review

Financial Management Questions & Answers

  The internal growth rate

Its net income this year is $19,500 and it pays dividends of $5,400. If it grows at its internal growth rate, what will its debt/equity ratio be next year? The internal growth rate is __ %

  Succinct report that includes a results-filled executive

Each student is to critically analyze the provided information on Apple Computers. In particular, each student updates the information by additional research to include Apple’s newer product lines, its competitors, and recent events, and decides the ..

  Repaid by the amortization method with an installment

A loan is being repaid by the amortization method with an installment at the end of each of 80 quarters at 6% annual effective interest, the first payment one quarter after the loan is made. In which payment are the principal and the interest most ne..

  Annualized holding period return

John purchased 100 shares of Black Forest Inc. stock at a price of $159.83 three months ago. He sold all stocks today for $160.60. During this period the stock paid dividends of $5.85 per share. What is John’s annualized holding period return (annual..

  What is the value of the total assets

A firm has total debt of $1,410 and a debt-equity ratio of .33.  - What is the value of the total assets?

  Recently issued bond with the characteristics

Duke Energy has recently issued a bond with the following characteristics: maturity: 20 years, coupon rate: 8% (paid semi-annually), face value: $1000. Your investment advisor has told you that the yield-to-maturity on this bond is 7.5%. What should ..

  Is this growth rate sustainable

In the TV episode Tim mentions that Grease Monkey Wipes have been on the market for a few months and they have sold 7,600 units with gross revenue is $7,400. In the update video Erin mentions that Grease Monkey Wipe has sold over 200,000 units and th..

  Sell stocks in an attempt to beat the market

What does the Efficient Market Hypothesis (EMH) imply for investors who buy and sell stocks in an attempt to beat the market?

  During the early stages of the learning curve

During the early stages of the learning curve, firms sometimes establish a price for their products that is lower than their actual costs, in anticipation of lower costs later on, after significant learning has occurred. This activity is called “forw..

  Assess the revenue-expense-profitability-liquidity-activity

Ratio analysis. Exhibit 4-21 lists the financial ratios for 227-bed Hollywood Community Hospital. Assess the revenue, expense, profitability, liquidity, activity, and capital statement of Hollywood for 20X1. Explain why these financial measures chang..

  Estimate your exposure to the exchange risk

Suppose that you hold a piece of land in the city of London that you may want to sell in one year. Estimate your exposure to the exchange risk

  Suppose that the treasurer of ibm has an extra cash reserve

Suppose that the treasurer of IBM has an extra cash reserve of $ 100,000,000 to invest for six months. The six- month interest rate is 6 percent per annum in the United States and 5 percent per annum in France.

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