User Account

All Pages

What are the expected return and standard deviation

Assignment Help Business Management
Reference no: EM132828486

Consider two stocks: WMT and IBM with the following properties Stock E(r) β(r) WMT 8% 13% IBM 12% 20% The correlation of the two stock returns is ρWMT,IBM = 9% and the risk-free rate is rf = 1%. You are advising a client who has $1 million invested. Currently 50% of this money is in WMT and 50% is in IBM.

(a) What are the expected return and standard deviation of the return on your client's portfolio?

(b) You are told that the optimal efficient portfolio (P) formed with WMT and IBM has weights wWMT = 60% and wIBM = 40%.

i. What are the expected return and standard deviation of Portfolio P?

Reference no: EM132828486

Questions Cloud

What government agency serves as the primary organization : What Government Agency serves as the primary organization in the United State Government for integrating and analyzing all intelligence pertaining to counter.
What is the npv and irr of proposal : What is the NPV and IRR of this proposal? What does the IRR tell you and do you trust it? Why or why not?
How much does Gina have to pay every three months : Gina bought a car priced at $9,238.00 for 11% down and the balance in equal quarterly payments over 5.5 years, How much does Gina have to pay every three months
Develop an intelligence report that collects information : Develop an intelligence report that collects, analyzes, and disseminates information on the Boston Marathon Terror Attack (Bombings) of 2013.
What are the expected return and standard deviation : (a) What are the expected return and standard deviation of the return on your client's portfolio?
How efforts may improve upon current security measures : Students will discuss the various concepts learned throughout the course and how those concepts and current efforts may be utilized to enhance efforts.
Overall strategies with regard to logistics operations : When deciding to form a strategic partnership, the text recommends performing an audit of needs and overall strategies with regard to logistics operations
What steps should you take to realize the arbitrage profits : Your old friend, Alex Mason, is a forwards and futures trader at Goldman Sachs. You look up his quotes for Capital Ventures.
What is the break-even point in dollars : Embleton Company estimates that variable costs will be 50% of sales, and fixed costs will total $1,148,000. What is the break-even point in dollars

Reviews

Write a Review

Business Management Questions & Answers

  Caselet on michael porter’s value chain management

The assignment in management is a two part assignment dealing 1.Theory of function of management. 2. Operations and Controlling.

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. Due to increase in the preference for light beer drinkers, Chris Prangel wants to introduce light beer version in Mountain Man. An analysis into the la..

  Mountain man brewing company

Mountain Man Brewing, a family owned business where Chris Prangel, the son of the president joins. An analysis into the launch of Mountain Man Light over the present Mountain Man Lager.

  Analysis of the case using the doing ethics technique

Analysis of the case using the Doing Ethics Technique (DET). Analysis of the ethical issue(s) from the perspective of an ICT professional, using the ACS Code of  Conduct and properly relating clauses from the ACS Code of Conduct to the ethical issue.

  Affiliations and partnerships

Affiliations and partnerships are frequently used to reach a larger local audience? Which options stand to avail for the Hotel manager and what problems do these pose.

  Innovation-friendly regulations

What influence (if any) can organizations exercise to encourage ‘innovation-friendly' regulations?

  Effect of regional and corporate cultural issues

Present your findings as a group powerpoint with an audio file. In addition individually write up your own conclusions as to the effects of regional cultural issues on the corporate organisational culture of this multinational company as it conducts ..

  Structure of business plan

This assignment shows a structure of business plan. The task is to write a business plane about a Diet Shop.

  Identify the purposes of different types of organisations

Identify the purposes of different types of organisations.

  Entrepreneur case study for analysis

Entrepreneur Case Study for Analysis. Analyze Robin Wolaner's suitability to be an entrepreneur

  Forecasting and business analysis

This problem requires you to apply your cross-sectional analysis skills to a real cross-sectional data set with the goal of answering a specific research question.

  Educational instructional leadership

Prepare a major handout on the key principles of instructional leadership

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