What is the reward-to-volatility ratio

Reference no: EM131937442

Question: Assume that you manage a risky portfolio with an expected rate of return of 19% and a standard deviation of 32%. The T-bill rate is 7%. Your client chooses to invest 50% of a portfolio in your fund and 50% in a T-bill money market fund.

What is the reward-to-volatility ratio (S) of your risky portfolio and your client's portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Reference no: EM131937442

Questions Cloud

Determine the outcome of the hedge : Determine the outcome of the hedge if, in fact, interest rates increase by 1% by October 2017. Did the hedge succeed in locking in today's lower interest rate?

Elements of starbucks organizational culture : Suggest the key elements of Starbucks' organizational culture that contributes to its success in a global economy.

What is ethically justifiable course of action for health : What is the ethically justifiable course of action for public health officials? Which ethical and other factors are relevant to these decisions?

How using your voice as communication tool affects your job : Write about given topic. The topic is how using your voice as a communication tool affects your job. Need 2-3 Slides on the same

What is the reward-to-volatility ratio : What is the reward-to-volatility ratio (S) of your risky portfolio and your client's portfolio? (Do not round intermediate calculations).

Value of the firm under each of the financing plan : What is the difference of total CFs under two financing plans ? What is the value of the firm under each of the financing plan.

What is the required rate of return on the portfolio : Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required return. The risk-free rate is 4.20%.

What is the crossover rate and the significance : Assume you are presented with the following mutually exclusive investments whose expected net cash flows are as follows.

What should the company charge such policyholder : What should the company charge such a policyholder to earn 11% on its investment?

User Account

All Pages