User Account

All Pages

Risk-free asset of an optimal portfolio

Assignment Help Finance Basics
Reference no: EM133115567

A friend developed a portfolio that earns an expected return of 22%22% and has a return standard deviation of 36%36%. You say that you can obtain the same expected return using the risk-free rate and market portfolio. Assume that the risk-free rate is 2.6%2.6%, the market return is 15.9%15.9%, and the market volatility is 25%25%. How much should you invest in the risk-free asset of an optimal portfolio to obtain the same expected return?

Reference no: EM133115567

Questions Cloud

Determining the expected annual return : Please help with the below question, and can you provide the excel formula if possible. Jack asked Jill to marry him, and she has accepted under one condition:
Top-down budgeting and bottom-up budgeting : In Chp 7, Berger discusses "top-down budgeting" and "bottom-up budgeting." Please provide a brief definition of each method. Which method does your institution
Discuss how company internal environment : Discuss how a company's internal environment might affect the development of the corporate strategy.
Determine the activity durations : Reflect on a project that you were involved in or one of which you have knowledge. What techniques were used to determine the activity durations?
Risk-free asset of an optimal portfolio : A friend developed a portfolio that earns an expected return of 22%22% and has a return standard deviation of 36%36%. You say that you can obtain the same expec
What are the free cash flows for year 44 : Assume the following investment opportunity. The company has constant leverage (debt to assets) of 50%50%, the cost of equity is 20%20%, and the cost of debt is
What data mining functions does this business need : What data mining functions does this business need? Can they be performed alternatively by data query processing or simple statistical analysis
How much is XYZ Company net income as at December : XYZ Company has the following accounts and balances as at December 31, 2021: How much is XYZ Company's net income as at December 31, 2021
Understanding on the benefits of issuing sovereign sukuk : Discuss three (3) points to describe your understanding on the benefits of issuing sovereign sukuk?

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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