What is the reward-to-volatility ratio for the equity fund

Assignment Help Finance Basics

Reference no: EM13257676

You manage an equity fund with an expected risk premium of 11.4% and a standard deviation of 28%. The rate on Treasury bills is 5.2%. Your client chooses to invest $50,000 of her portfolio in your equity fund and $150,000 in a T-bill money market fund. What is the reward-to-volatility ratio for the equity fund?

Reference no: EM13257676

Questions Cloud

What is the future value of your retirement after 10 years : You deposit $10,000 into a retirement account at the end of the next 10 years earning 9% interest, what is the future value of your retirement after 10 years?

Determine the gross pay : Assume further that the FICA tax rate was 7.5% (on earnings up to $100,000) and federal income tax to be withheld was $235. Determine the gross pay for the week.

How do you increase student success in your classroom : How do you make individualized connections to your students via online learning and how do you increase student success in your classroom?

Compute the value of ending inventory under lifo : Compute the value of ending inventory under LIFO? and compute the value of ending inventory under FIFO? and, which inventory costing method results in the largest cost of goods sold.

What is the reward-to-volatility ratio for the equity fund : Your client chooses to invest $50,000 of her portfolio in your equity fund and $150,000 in a T-bill money market fund. What is the reward-to-volatility ratio for the equity fund?

Primary components of the conceptual framework : Identify the primary components of the conceptual framework for business organizations and explain the purpose of each component.

What will be the induced emf in the coil : A coil of wire containing N turns is in an external magnetic field that is perpendicular to the plane of the coil and it steadily changing, what will be the induced emf in the coil

What is the bridge output per hour stress : A Whetstone bridge has a strain gage in the lower right leg with a 120 ohm nominal resistance. It is mounted on steel with a Modulus of Elasticity equal to 30x106. The other resistors are equal to 120 ohms.

Effects on the accounts and financial statements : Determine the effects on the accounts and financial statements of recording the following selected transactions of Lone Star Leather Co.:

User Account

All Pages