User Account

All Pages

What is expected rate of return

Assignment Help Finance Basics
Reference no: EM133072475

Suppose that you have $1 million and the following two opportunities from which to construct a portfolio:

a. Risk-free asset earning 12% per year.

b. Risky asset with expected return of 30% per year and standard deviation of 40%.If you construct a portfolio with a standard deviation of 30%, what is its expected rate of return?"

Reference no: EM133072475

Questions Cloud

What will be the value in one year : Suppose you are going to receive $1,000 in two years from now. Assume the interest rate is 10% and monthly compounding.
Effective yield-to-maturity : Peter is renovating his company's headquarters. He recently depleted all his cash reserves on strategic cosmetic upgrades, so he needs to raise additional capit
Investing in the stocks preferably : Suppose you are an investment analyst, your supervisor, a portfolio manager asked equity research report and recommend one (1) Malaysian common stock which you
Compute the project net present value : Ebson Manufacturing is evaluating a project that costs $464,000 and is expected to generate $200,000 each. Compute the project net present value
What is expected rate of return : Suppose that you have $1 million and the following two opportunities from which to construct a portfolio:
How much is in the account today : The interest rate has been 4% APR compounded quarterly since he opened the account. How much is in the account today?
Prepare any necessary adjusting journal entries : The company also purchased a used car at the beginning of the month (June 1) for $6,000 cash. Prepare any necessary adjusting journal entries
Argument that invokes financial principles : Consider the following compound interest scheme, which we'll refer to as Scheme RST throughout this test. Scheme RST
What is the cost of the preferred stock : Travis Industries plans to issue perpetual preferred stock with an $11.00 dividend. What is the cost of the preferred stock, including flotation

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