User Account

All Pages

What are the investment proportions in the minimum-variance

Assignment Help Finance Basics
Reference no: EM132505697

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 8%. The probability distribution of the risky funds is as follows:

Expected Return Standard Deviation 

Stock fund (S) 20% 30%

Bond fund (B) 12 15

The correlation between the fund returns is 0.10.

What are the investment proportions in the minimum-variance portfolio of the two risky funds? What is the expected value and standard deviation of its rate of return?

Tabulate and draw the investment opportunity set of the two risky funds. Use investment proportions for the stock fund of 0% to 100% in increments of 20%.

Please show step by step the works in excel.

Reference no: EM132505697

Questions Cloud

Identify three recommendation to improve energy conservation : Identify energy utilization within your own home. Sketch a floor plan for your home. Complete audit forms detailing the heating system, insulation, etc.
What will be the effect on profit of accepting the order : PowerDrive, Inc. produces a hard disk drive that sells for $175 per unit. The cost of producing 25,000 drives in the prior year was:
What disease or illness are predisposed : What Disease or Illness are you predisposed or do you think will cause your death someday? Do you drink tap water or bottled water? How much?
Create a framework for a total rewards program : For the Module 3 Milestone assignment, create a framework with the critical components for a total rewards program to increase employee interaction, production.
What are the investment proportions in the minimum-variance : A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund
PSY4910 Consultant Capstone Assignment : PSY4910 Consultant Capstone Assignment Help and Solution - Baker College Homework Help - Depression among Adolescents
What are the goals of the organization : Research the organizational structure of the United Nations Human Rights Council. What are the goals of the organization? How is it structured to accomplish.
Write a policy on oklahoma department of human service : Write a Policy On Oklahoma department of Human Service. In APA format. Remember you should be following the policy writing guide in Public Policy Writing
How would you approach your conversation with each employee : Write a plan for how would you approach your conversation with each employee, including the most essential topics to cover. As you write your plan, think about.

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