User Account

All Pages

What is the sharpe ratio of your current investment

Assignment Help Finance Basics
Reference no: EM132433960

Problem: Suppose that you currently have $250,000 invested in a portfolio with an expected return of 12% and a volatility of 10%. The efficient (tangent) portfolio has an expected return of 17% and a volatility of 12%. The risk-free rate of interest is 5%.

Required:

a. What is the Sharpe ratio of your current investment? What is the Sharpe ratio of the efficient portfolio? What can you say about your investment based on the ratios?

b. Suppose that you want to maximize your expected return without increasing your risk. How can you achieve this goal?

c. Without increasing your risk beyond the current 10%, what is the maximum expected return you can expect?

Reference no: EM132433960

Questions Cloud

How food system affects inequalities is speculative : Julie Guthman's piece, "Foodies on a Mission," is provocative. What you think of her view of a civilizing mission in the alternative-food movement?
Discuss what you have learned on cryptography : Discuss what you have learned on cryptography and how this method to secure information has changed over the decades.
Net cash flows and npvs for different discount rate : Net cash flows and NPVs for different discount rate for projects S and L are given below: IRRs = 13.1%, IRRl = 11.4%. Crossover rate = 8.1%
What risks do such assumptions pose : There is a startup company called Extreme Unlimited, and they are in the process of hiring new employees due to recent demand for their product.
What is the sharpe ratio of your current investment : What is the Sharpe ratio of your current investment? What is the Sharpe ratio of the efficient portfolio? What can you say about your investment based on the ra
Explain the types of security policies in brief : There are three types of security policies whch an organization or company must define including an Enterprise Information Security Policies (EISP).
Why did food insecurity rates drastically increase : In perspective Janet Poppendieck argues for universal school meals. What are the main counterarguments to her perspective? What is your opinion?
Arise in information management : Campbellsville University library or other sources, read at least four academically reviewed articles on ethical issues that may arise in information management
How could the shortcoming have been prevented : Using a Web browser and search engine, search the terms "CitiBank backup tapes lost". You will find many results, Select one article and identify.

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculate some financial ratios

The project will be completed in five parts. In each part your will answer specific questions and calculate some financial ratios. Remember, financial ratios can be calculated different ways and publicly available financial statements are not alwa..

  Recent change in the remote environment

Identify one recent change in the remote environment of U.S. Business and discuss its impact on an the Automobile Industry

  Deposits into the account after the initial deposit

You want to have an$ 80,000 college fund in 14years. How much will you have to deposit now under the scenario below. Assume that you make no deposits into the account after the initial deposit. An APR of 6%compounded daily

  Trigen corp management will invest cash flows of 1211084

trigen corp. management will invest cash flows of 1211084 472150 1290202 818400 1239644 and 1617848 in research and

  What is the cost of equity

The return on the U.S. Treasury bill is 2.5 percent and the market risk premium is 6.8 percent. What is the cost of equity?

  What is the incremental cost of borrowing the extra money

A borrower is purchasing property for $180,000 and can choose between two possible loan alternatives. The first is a 90% loan for 25 years at 9% interest.

  What is wards estimated intrinsic value per share

Ward's debt has a market value of $1,800 million and Ward has no preferred stock. If Ward has 80 million shares of common stock outstanding, what is Ward's estimated intrinsic value per share of common stock?

  Important to financial management

Identify the information flows that are important to financial management. How are they related to alternative budgeting methods?

  Calculate the bond price

Consider an America Off Line thirty year, semiannual bond. It is issued at par today. Interest rates remain at 6 percent for five years, and then GRADUALLY, over 5 years rises to 7%,

  Spartan stores is expanding operations with the

spartan stores is expanding operations with the introduction of a new distribution center. not only will sales increase

  Hewlett packard purchased computer chips from siemens a

hewlett packard purchased computer chips from siemens a german electronics concern and was billed 5 million euros

  What must lisa annual deposit

Lisa Simpson wants to have $1,100,000in 50years by making equal annual end-of-the-year deposits into a tax-deferred account paying 11.75 percent annually. What must Lisa's annual deposit be?

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd