Standard deviation of return on your client portfolio

Assignment Help Financial Management
Reference no: EM131849407

You manage an equity fund with an expected risk premium of 10.8% and a standard deviation of 22%. The rate on Treasury bills is 3%. Your client chooses to invest $75,000 of her portfolio in your equity fund and $25,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? (Round your answers to 2 decimal places.) Expected return % Standard deviation % ReferenceseBook & Resources.

Reference no: EM131849407

Questions Cloud

Discuss the methods used to estimate costs : Before you can prepare a project budget you must estimate the cost of each activity. Discuss the methods used to estimate costs.
Write a memo regarding the capital budgeting analysis : To analysis a capital investment project three widely use techniques are Net Present Value method, IRR and Payback period.
What went wrong with the us economy 2008 : What went wrong with the U.S. economy 2008? What are some of our leading economic problems and what is our governments responses to them?
Differences between presidential and parliamentary systems : What are the key differences between presidential and parliamentary systems? Why do those differences exist?
Standard deviation of return on your client portfolio : What is the expected return and standard deviation of return on your client’s portfolio?
Compare and contrast the views of plato and karl marx : Choose from philosophers you have been studying in this course. One example: compare and contrast the views of Plato and Karl Marx on who should govern.
Write a value proposition for your new product : Present the results of your activities in a two-page report identifying your new product idea, explaining the procedure you used to develop the process.
Breaking news president trump to move us embassy : Breaking news President Trump to move US Embassy to Jerusalem. What if any diplomatic effect will this have on the Middle East peace process?
Explain what in qualitative research you would like to know : Indian Leader/Anti-War Activist: Education without action is like a billboard in a basement-big, bold, but actionable to no one.

Reviews

Write a Review

Financial Management Questions & Answers

  What price will you receive a margin call

You buy 500 shares of stock at a price of $ 38.00 and an initial margin of 60 percent. If the maintenance margin is 30 percent, at what price will you receive a margin call?

  What is the intrinsic value of the call

A particular call is the option to buy stock at $25. It expires in six months and currently sells for $3 when the price of the stock is $27. What is the intrinsic value of the call? Round your answer to the nearest dollar. If an individual buys the s..

  Income statement-balance sheet and statement of cash flows

Define the three basic financial statements, income statement, balance sheet, and statement of cash flows.

  Annual salary will be left-perpetuity investment

Alex Rodriguez recently signed a contract with the Texas Rangers that will pay him approximately 250 million dollars over the next 10 years. In this problem, assume that he will receive his pay annually in 25 million dollar installments, and that he ..

  Consider an amortizing loan

Consider an amortizing loan. The amount borrowed initially is $13,456, the interest rate is 7% APR, and the loan is to be repaid in equal monthly payments over 25 years. As we know, while each monthly payment will be the same, the amounts of interest..

  Marketing commitments to facilitate a successful business

The discussed the needed marketing commitments to facilitate a successful business. What are the benefits to the consumer? Who is your target market?

  European put option on non-dividend-paying stock

Consider a 3-month European put option on a non-dividend-paying stock, where the stock price is $70, the strike price is $70, the risk-free rate is 3% per annum. Stock price will either move up by 10% or down by 5%, every month. Price the put with bi..

  How much would you have for a down payment

You want to buy a house within 3 years, and you are currently saving for the down payment. - Your expected annual return is 8%. - How much would you have for a down payment at the end of Year 3?

  Dirty data lacking in integrity

Should we be concerned about such data mining and that "dirty data” lacking in integrity and deemed untrustworthy might be stored?

  What are the annual taxes owed on the interest

Molly Matters Inc. issues a split-coupon $1,000 bond that matures in seven years. Interest payments are $70 a year (7 percent) and start after three years have lapsed. The bond initially sells for a discounted price of $816.3. You are in the 30 perce..

  Prepare the marginal cost of capital schedule

Company ABC has an optimal capital structure of 40% debt and 60% common equity. Assume that the debt break points occur at $36 million and $50 million, and that the common equity break point occurs at $45 million. The after tax cost of debt is 6%, 10..

  Reemerge as major producer of computer software

Obsolete Computer Systems, Inc. wants to reemerge as a major producer of computer software. The company has two options: Either it can purchase Upstart Software for $25m now whose products are expected to survive 5 years.

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