What is its expected rate of return

Assignment Help Financial Management

Reference no: EM131853642

Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: Risk-free asset earning 8% per year. Risky asset with expected return of 23% per year and standard deviation of 31%. If you construct a portfolio with a standard deviation of 22%, what is its expected rate of return? (Do not round your intermediate calculations. Round your answer to 1 decimal place.)

Expected return on Portfolio

Reference no: EM131853642

Questions Cloud

Classic retirement problem : This is a classic retirement problem. Your friend is celebrating her 35th birthday today and wants to start saving for her anticipated retirement at age 65.

Calculate the capital structure weight of common stock : Based on the following information, calculate the capital structure weight of common stock.

College expenses on the day she starts college : Will there be enough money in the account for Ashley to pay for her college expenses on the day she starts College?

What must the coupon rate be on the bonds : Kiss the Sky Enterprises has bonds on the market making annual payments, with 18 years to maturity, What must the coupon rate be on the bonds?

What is its expected rate of return : If you construct a portfolio with a standard deviation of 22%, what is its expected rate of return?

You deposit each year to achieve your goal : You want to have $4.5 million in real dollars in an account when you retire in 30 years. What real amount must you deposit each year to achieve your goal?

Compute the percentage total return : Suppose a stock had an initial price of $52 per share, paid a dividend of $1.45 per share during the year, Compute the percentage total return.

What is the net present value of this investment : Caesars Palace Las Vegas made headlines when it undertook a $75 million renovation. What is the net present value (NPV) of this investment?

Required return must investors be demanding on storico stock : If the stock price is $40.95, what required return must investors be demanding on Storico stock?

User Account

All Pages