What is the sharpe measure of resulting complete

Assignment Help Finance Basics
Reference no: EM132468108

You invest $100,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 12.25% and a standard deviation of 48% and a treasury bill with a rate of return of 3.50%. How much money should be invested in the risky asset to form a portfolio with an expected return of 10%? Be sure to convert your percentage weight in the risky asset to dollars. Enter your answer rounded to two decimal places

What is the Sharpe measure of your resulting complete portfolio in problem 1?

Reference no: EM132468108

Questions Cloud

Identify how such a securitization benefits : Identify how such a securitization benefits a financial institution and any related risks that may be created through the securitization process.
Explain the role of health educators in effecting milestone : Post a description of the milestone that you selected. Explain the role of health educators in effecting/contributing to this milestone.
Determine compute the number of units sold : Compute the number of units that would have to be sold in 2017 to reach the stockholders' desired profi t level. Compute the number of units sold in 2016.
Post your philosophy statement for health education : Post your philosophy statement for health education. This will require you to explain your health education philosophy. In the explain which one of the five.
What is the sharpe measure of resulting complete : What is the Sharpe measure of your resulting complete portfolio in problem 1?
Why you chose the specific instructional strategies : In 250-500 words, provide a rationale explaining why you chose the specific instructional strategies for your lesson plan. How did your chosen research-based.
Explain exchange rate and exchange difference : Explain "exchange rate" and "exchange difference" in accordance to IAS 21 and demonstrate how the exchange differences arise.
Primary financial markets play in the current economy : Describe the relationship between financial institutions and financial markets and suggest a method by which this relationship could run smoother.
Concepts of personal defenses and real defenses : Compare the concepts of Personal Defenses and Real Defenses, and talk about the importance of each category to a Holder in Due Course.

Reviews

Write a Review

Finance Basics Questions & Answers

  Henderson industries has 500 million of common equity its

henderson industries has 500 million of common equity its stock price is 44 per share and its market value added mva is

  Find the amount of her annual payments

Mary Smith borrowed $20,000 from Last National Bank. She will repay the loan with 5 annual payments and her interest rate is 14%.

  Calculate the price of the call numerically

MF 796 - Computational Methods of Mathematical Finance - Boston university - Estimate the experimental rate of convergence of each method and compare

  Which choice seems more alluring

At the season of his retirement Rahul is given a decision between two choices: (a) a yearly annuity of Rs120,000 the length of he lives, and (b) an irregularity entirety measure of  Rs.1,000,000.

  How does the tax shield of debt affect project valuation

How does the tax shield of debt affect project valuation under the standard free-cash flow method of computing NPV as opposed to the APV method?

  Discuss the appropriateness of the revenue recognition

Discuss the appropriateness of the revenue recognition techniques employed by CN for recognizing freight revenues.

  Calculate wacc-capital budget analysis

WACC & Capital Budget Analysis - Based on the inputs below how do you calculate WACC & capital budget analysis for this Base Case using the Net Present Value

  Based on your analysis would you recommend an individual

based on your analysis would you recommend an individual invest in this company? what strengths do you see? what

  What is your one best guess as to the value of the bond

You buy a 6 percent, 15-year, $1,000 par value floating rate bond in 1999. By the year 2014, rates on bonds of similar risk are up to 8 percent.

  What will net increase or decrease in the annual flotation

The amortization of flotation costs reduces taxes, and thus provides an annual cash flow. What will the net increase or decrease in the annual flotation cost tax savings be if refunding takes place?

  Find the option price using a replicating portfolio

We have a call option c with maturities 3,0,0,0 (respective to the stock maturities) with a .25 probability. How do we find the option price using a replicating portfolio?

  Build a new headquarters in sandy

Your startup firm needs $12 million to build a new headquarters in Sandy. As the CFO you have decided to raise the money with a bond issue.

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