What is the expected return on portfolio z

Assignment Help Finance Basics
Reference no: EM132033236

Suppose the risk-free rate is 3.2 percent and the market portfolio has an expected return of 9.9 percent. The market portfolio has a variance of .0282. Portfolio Z has a correlation coefficient with the market of .18 and a variance of .3185

According to the capital asset pricing model, what is the expected return on Portfolio Z?

Reference no: EM132033236

Questions Cloud

What is the present value of this stream of cash flows : If the current, effective, interest rate is 8.3% p.a., what is the present value of this stream of cash flows?
What amount should be used as initial cash flow for project : She wants to build a new facility on that site. The building cost is estimated at $1,170,000. What amount should be used as the initial cash flow
Production facility in central america : What is the aftertax salvage value from this sale if the tax rate is 34 percent?
Forecast firm l price in one year : Using the CAPM and an assumption about market equilibrium, forecast Firm L's price in one year.
What is the expected return on portfolio z : According to the capital asset pricing model, what is the expected return on Portfolio Z?
Write a vhdl description for a 4-bit shift register : Write a VHDL description for a 4-bit shift register. The shift register is to be negative edge triggered.
Funding amount a business would receive : What criteria does a Venture Capitalist firm use to decide on the funding amount a business would receive?
Approximate real rate of return on investment : Today, you sold your shares for $54.2 a share. What is your approximate real rate of return on this investment?
What is the 95 percent probability range : A stock has returns of 3 percent, 17 percent, -24 percent, and 16 percent for the past 4 years. Based on this information, what is the 95 percent probability?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the present value of winnings

You have just won the lottery and will receive $540,000 as your first payment one year from now. You will receive payments for 26 years.

  Implementing the lockbox system

Jarrett Enterprises is considering whether to pursue a restricted or relaxed current asset investment policy. The firm's yearly sales are $400,000; its fixed assets are $100,000; debt and equity are each 50% of total assets.

  Net present value npv and adjusted present value apv are

net present value npv and adjusted present value apv are two methods of calculating share value.create a powerpoint

  What is the future value of an initial

What's the future value of an initial $100 after 3 years if it is invested in an account paying 8% annual interest and compounded annually?

  What do you think the beta of your portfolio would be if

what do you think the beta of your portfolio would be if you owned half of all the stocks traded on the major

  What portion is the capital gains yield

What is Ralph's return on his investment for the year? What portion of the total return is the dividend yield and what portion is the capital gains yield

  Prepare a report that outlines your financial strategies

Prepare a report that outlines your financial strategies. Prepare a PowerPoint presentation that outlines your financial strategies. Prepare a script for your presentation and Present your recommendations to your client (ie. the class) in a 5 - 7 min..

  What is the aftertax cash flow from the sale of this asset

If the relevant tax rate is 35 percent, what is the aftertax cash flow from the sale of this asset?

  What is the default risk premium on koys bonds

The liquidity premium for Koy's bonds is LP = 0.75% versus zero for T-bonds, and the maturity risk premium for all bonds is found with the formula MRP = (t - 1) ´ 0.1%, where t = number of years to maturity. What is the default risk premium (DRP) ..

  Find the most that wilshaw should pay for this survey

Wilshaw can run a survey to test market reaction with results A, B or C. Experience suggests that the reliability of such surveys is described by the following matrix of P(A/good), P(A/medium), etc. Use a decision tree to find the most that Wilsha..

  Calculate the the initial cash flow amount

Marshall's & Corporation bought a corner lot in Eglon City five years ago at a cost of $640,000. The lot was recently appraised at $810,000.

  Complete the balance sheet and sales information

Complete the balance sheet and sales information in the table that follows for Hoffmeister Industries using the following financial data.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd