What is the reward-to-variability ratio of the portfolio

Assignment Help Finance Basics
Reference no: EM132510052

The expected return of a portfolio is 10.1%, and the risk-free rate is 3%. If the portfolio standard deviation is 15%, what is the reward-to-variability ratio of the portfolio?

Reference no: EM132510052

Questions Cloud

What is the cost of ending inventory under the fifo method : What is the cost of ending inventory under the FIFO method of inventory costing using the periodic inventory procedure? A dealer started the year with 2 model
What is the expected return on a stock with a beta : The risk-free rate is 6%, and the expected return on the market is 16%. What is the expected return on a stock with a beta of 1.9?
Determining the stock beta : The standard deviation of the market is 29%, and the standard deviation of the stock is 37%. What is the stock's beta?
What is the cost of ending inventory under the lifo method : What is the cost of ending inventory under the LIFO method of inventory costing using the periodic inventory procedure? A dealer started the year with 2
What is the reward-to-variability ratio of the portfolio : The expected return of a portfolio is 10.1%, and the risk-free rate is 3%. If the portfolio standard deviation is 15%, what is the reward-to-variability ratio
Compute the gross margin as a percentage of net sales : From the following data, compute the gross margin as a percentage of net sales Sales, Sales returns and allowances,Cost of goods sold
Determining the percentages of money : You are considering investing $1,000 in a T-bill that pays 0.05 and a risky portfolio, P, constructed with 2 risky securities, X and Y.
What would the total opportunity cost be : What would the total opportunity cost be if by accepting the special order the company lost sales of 6,000 units to its regular customers?
Determining the annual discount rate : You will take 6.6% as the annual discount rate. That's the cost of capital to the entrepreneur.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate a the unadjusted npv and b the certainty

certainty equivalent npv. rush corporation is considering the purchase of a new machine that will last 5 years and

  Calculate profit margin and liabilities-to-assets ratio

Assume you are given the following relationships for the Haslam Corporation: Sales/Total assets 1.2 Return on assets (ROA) 4% Return on Equity (ROE) 7%.

  Expected interest rate on treasury securities

Assuming that the liquidity premium theory is? correct, on March? 5, 2010, what did investors expect the interest rate to be on the? one-year Treasury bill

  What has been the impact on the price of the bond

What has been the impact on the price of the bond (in percentage terms)? Please show all of your work.

  What about when it is greater than the cost of capital

Explain how the IRR works and how this is used to help evaluation a potential project. What is the conclusion when the IRR is below the cost of capital of a project? What about when it is greater than the cost of capital?

  Which of the following statements is most correct

Which of the following statements is most correct?

  Calculate the zero-coupon bond yield curve

Consider a binomial model of the yield curve over 3 years where y_0, 1 = 5%. The probability of an up movement in 1-period forward rates for year.

  Explain the agency problem of mncs

Explain how the theory of comparative advantage relates to the need for international business.

  Developing nations for manufactured goods

The greater part of international trade consists of an exchange of raw materials from developing nations for manufactured goods from developed nations."

  Expiration strike discounted call put

Coca-Cola currently has a stock price of $53.75. It also has eight options available with the following Expiration Date, Strike Price (Exercise Price), and Option Price. For Example, you can buy a Feb 55 Call for $3.6 (or you could sell it for $3..

  Determining the bi-weekly deposits

You expect that you will be able to earn a quoted rate of 10%, compounded semi-annually on your deposits. However, you only expect to earn an EAR of 5% on your investment after you retire since you will choose to place the money in less risky inve..

  Compute the relative risk of the two firms

Integrativ; Leverage and Risk Firm R has sales of 100,000 units at $2.00 per unit, variable operating cost of $1.70 per unit, and fixed operating cost of $6,000

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