What is the reward-to-volatility ratio for portfolio

Assignment Help Financial Management

Reference no: EM131956451

1. "You invest $7,900 now and receive $3,300 at the end of year 1, $3,100 at the end of year 2, $2,900 at the end of year 3, and so on. In what year do you break even on your investment? Use the discounted payback approach and assume an annual interest rate of 5.6%, compounded annually. Enter your answer as an integer."

2. A risky portfolio has an expected rate of return of 15% and a standard deviation of 20%. The Treasury bill rate is 4%. What is the reward-to-volatility ratio for the portfolio?

Reference no: EM131956451

Questions Cloud

Capital budgeting-how capital budgeting works in real world : Using the examples of bad investments, what do companies need to understand about how capital budgeting works in the real world?

Management of firm short term assets and liabilities : Working capital management is the management of a firm’s short term assets and liabilities.

What equal-sized annual withdrawals : What equal-sized annual withdrawals can Slim make from the account if the first withdrawal occurs in 2018.

Security will make payments : A security will make payments of $25 per month for the next 5 years, plus $1000 at maturity. Which of the following is true?

What is the reward-to-volatility ratio for portfolio : A risky portfolio has an expected rate of return of 15% and a standard deviation of 20%. What is the reward-to-volatility ratio for the portfolio?

Negatively correlated assets to reduce or diversify risk : Diversification is “combining negatively correlated assets to reduce, or diversify, risk.”

What was the firm operating cash flow or OCF : What was the firm's 2016 operating cash flow, or OCF?

About the relationship between interest rates and bond value : Explain what you learned about the relationship between interest rates and bond value.

What is the price per share of the company stock : What is the price per share of the company’s stock?

User Account

All Pages