User Account

All Pages

What is the value of john risk aversion coefficient

Assignment Help Finance Basics
Reference no: EM133001330

Expected return and standard of a risky portfolio are 10% and 20% respectively. Risk-free rate is 4%. John constructed a complete portfolio with these two assets, which maximize his utility. If the standard deviation of his complete portfolio is 17%, what is the value of John's risk aversion coefficient?

Reference no: EM133001330

Questions Cloud

Provide some insights into apple company : Provide some insights into Apple company, XIaomi company and their technology and service industry. Identify and discuss your organisation's strategy
Explain the concept of time value of money : Explain the concept of time value of money. How would you use this in personal financial planning such as borrowing or saving for the future?
Discuss xiaomi company strategy based on strategy theory : Discuss your Xiaomi Company's strategy based on the Strategy theory developed by Professor Michael E Porter of Harvard Business School.
Explain the cryptocurrency vesting : Your co-worker tells you that he has beaten the market for each of the last three years. Suppose you believe him.
What is the value of john risk aversion coefficient : Expected return and standard of a risky portfolio are 10% and 20% respectively. Risk-free rate is 4%. John constructed a complete portfolio with these two asset
Calculate the economic value add for the business unit : Calculate the Economic Value Add (EVA) for this business unit and select which of the following is correct. (Assume a tax rate of 30%)
Compute the price of xyz stock : Mr. Blight opened a margin account and bought 200 shares of stock in the XYZ Corporation at $80 per share. The initial margin was 70%. Shortly after this invest
What proportion of variation in xyz excess return : What proportion of variation in XYZ excess return is explained by variation in the market excess return? (You must show all necessary workings)
Explain the role of credit rating agencies : Suppose that the principals assigned to the senior, mezzanine, and equity tranches for the ABS, the ABS CDO 1 and the ABS CDO 2 are as in figure 1.

Reviews

Write a Review

Finance Basics Questions & Answers

  Value of the investment in two years

What will be the value of the investment in two years? Round to two decimal places.

  What will be the 1-year spot interest rate

What will be the 1-year spot interest rate in three years if the expectations theory of term structure is correct?

  Determine the maximum deviation allowable

Calculate the IRR and use it to determine the maximum deviation allowable in the cost of capital estimate to leave the decision unchanged.

  Determining the expected financing cost

If a company can borrow dollars at 6.7%, what is the highest interest rate it should be willing to pay to borrow euro, assuming it is trying to minimize.

  Tax incentives by capital markets authorities

Question 1: Discuss some of the tax incentives by capital markets authorities.

  How many shares must the firm issue

If the firm intends to issue new shares to finance the project, how many shares must the firm issue?

  What was its pe ratio

Sony's stock price at the end of last year was $23.50 and its earnings per share for the year were $1.30. What was its PE ratio?

  What is the standard deviation of your return

The returns on your portfolio over the last 5 years were -5%, 20%, 0%, 10% and 5%. What is the standard deviation of your return?

  Expected return equal

Stock A offers an expected return equal to 18% with a standard deviation equal to 22%. Gold offers an expected return equal to 10% with a standard deviation equal to 30%. The correlation between stock A and gold is equal to +1.00 Which of the foll..

  At what price per jar would project npv equal zero

At what price per jar would project NPV equal zero? (Enter your answer in dollars not in millions. Do not round intermediate calculations).

  What is the present value of those cash flows

What are the after-tax cash flows from the proposed ERP investment through 2007? What is the present value of those cash flows?

  What can you say about the advertisements

A mobile phone has an advertised life of 30,000 hours. A sample of 50 phones had a life of 28,500 hours with a standard deviation of 1,000 hours. What can you say about the advertisements?

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