What is the expected return of the proposed portfolio

Assignment Help Finance Basics

Reference no: EM13280151

A U.S. investor is considering a portfolio consisting of 60% invested in the U.S. equity index fund and 40% invested in the British equity index fund. The expected returns for the funds are 10% for the U.S. and 8% for the British, standard deviations of 20% for the U.S. and 18% for the British, and a correlation coefficient of 0.30 between the U.S. and British equity funds.

a) What is the expected return of the proposed portfolio?

b) What is standard deviation of the proposed portfolio?

Reference no: EM13280151

Questions Cloud

Find the volume of the tank : A 4 cm radius hose pumps out gasoline at a speed of 2 m/s in to an underground tank. what is the volume of the tank

How to calculate the percent chloride in the sample : A 25.0 g sample of garden compost was analyzed for chloride content. The sample was dissolved in water and the chloride was precipitated as silver chloride. 1.58 g of dried precipitate was obtained. Calculate the percent chloride in the sample

What is the width of the central bright fringe : Red light of wavelength 633nm from a helium-neon laser passes through a slit 0.370mm wide. What is the width of the central bright fringe

Define concentrations of flouride in drinking water grerater : Concentrations of flouride in drinking water grerater than 4.0 mg/L can cause mottled teeth in children. What is 4.0 mg/L expressed as molality

What is the expected return of the proposed portfolio : The expected returns for the funds are 10% for the U.S. and 8% for the British, standard deviations of 20% for the U.S. and 18% for the British, and a correlation coefficient of 0.30 between the U.S. and British equity funds.

Find the speed of the ice cube : An ice cube sliding along the ground at 3 m/s goes off a ramp pointed straight up. What is the speed of the ice cube when it comes down, just before it hits the ground

Concentration becomes smaller as the temperature is increase : Which concentration becomes smaller as the temperature is increased from 20 degrees celcius to 80 degrees celcius

At what rate will the company break even : A firm will sell an asset in 2 years for $375,000 and it costs $285,000 to produce today. Given an opportunity rate of 16%, will the firm make a profit on this asset? At what rate will the company break even. Show step by step with answer.

Should the new cash discount policy be utilized : Translate this into average inventory (in units and dollars) before and after the change in the cash discount policy. c. Compute the following income statement. d. Should the new cash discount policy be utilized? Briefly comment.

User Account

All Pages