User Account

All Pages

What is the client risk aversion

Assignment Help Finance Basics
Reference no: EM132645499

Question 1:

Your client holds 125% of her wealth in an index fund that tracks the S&P 500, which has expected return & risk of 11% & 21% respectively. The risk-free rate = 3.2%. What is the client's risk aversion?

Question 2:

As stated in Problem #1 above, the client holds 125% of her wealth in the S&P 500 index fund. Explain how that can be accomplished. What is the client's allocation to T-Bills?

Reference no: EM132645499

Questions Cloud

What amount will the investments accumulate : If you use your inheritance in an account that generates 6% returns compounded annually, how many years will it take before your money grows to 750,000SAR?
Value of the company share today-pc manufacturer : A PC manufacturer has reported the following accounting information for the year ended 2019:
Firm commitment underwriting for new facility : How many shares of stock will MEC need to sell if they choose firm commitment underwriting for their new facility?
Calculate the yield to maturity-calculate the return : Consider a two year bond with the following characteristics. The bond was issued at time t = 0 with face value FV = 200, and annual coupon payment
What is the client risk aversion : Your client holds 125% of her wealth in an index fund that tracks the S&P 500, which has expected return & risk of 11% & 21% respectively.
What is the client risk aversion : The risk-free rate = 3.2%. What is the client's risk aversion?
Show the effect on revenues and profitability : Show the effect on revenues and profitability based on stated assumptions. Potential advantages and disadvantages, both financial and non-financial
Exlpain why an investor might want to investment in t-bills : Stocks have outperformed T-Bills by about 7% per year over the past 95+ years. Use utility theory to explain why an investor might want to investment in T-Bills
Identify the optimal compete portfolio on the graph : The market portfolio represented by the S&P 500 has a 12% expected return & 20% risk. The risk-free rate = 5% & the investor's risk aversion coefficient

Reviews

Write a Review

Finance Basics Questions & Answers

  Projected return on investment

Develop a three- to four-page analysis, excluding the title page and reference page(s), on the projected return on investment for your college education and projected future employment. This analysis will consist of two parts.

  Post-marital residence rules

What is the relationship between post-marital residence rules and the form of descent found

  What is the maximum dividend nathan could have declared

Calculate Nathan's retained earnings balance as of the end of 2014. What is the maximum dividend Nathan could have declared in 2014?

  Npv of the temporary housing facility

What is the NPV of the temporary housing facility to the nearest dollar?

  What is the potential savings in interest expense

what is the potential savings in interest expense if the firm achieves the industry for the turnover of its inventory?

  Designing a health care facility

What are some main principles that must be followed when using evidence-based design for designing a health care facility?

  How nonverbal communication affects a speaker

What effect does your nonverbal communication have on the speaker? (It should encourage him or her to continue talking and want to say more.)

  Derivative vehicles and strategies

Discuss the following derivative vehicles and strategies:

  What is the net present value of the more attractive choice

What is the net present value of the more attractive choice? Please round your answer to the nearest dollar.

  What is the current stock price

The required rate of return on equity (rS) is 10 percent. What is the current stock price (P0)?

  What is capital after-tax wacc

If the returns required by investors are 9 percent, 11 percent, and 18 percent for the debt, preferred stock, and common stock, respectively, what is Capital's after-tax WACC? Assume that the firm's marginal tax rate is 40 percent. (Round intermed..

  What is its yield to maturity

A semiannual 10% coupon bond that matures in 40 years has a current price of $800. What is its yield to maturity?

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