What is the weight for the risk-free asset

Assignment Help Financial Accounting
Reference no: EM132966190

Problem 1: A portfolio consists of only the market portfolio (with an expected return of 20.1% and a standard deviation of 15.2%) and the risk-free asset. The risk- free rate is 4.5%. If the target expected return of this portfolio is 18%, what is the weight for the risk-free asset? The weight for the risk-free asset is %.

Reference no: EM132966190

Questions Cloud

What is the company total inventory cost for the year : The company uses 600,000 pounds of steel annually, the current purchasing cost of steel is $ 3.2 per pound, What is the company total inventory cost for year
Impact of incremental innovations : Despite significant setbacks in recent years, American Express still enjoys a strong reputation as a respected brand. If the company's leaders believed that dec
What amount should m recognize as compensation expense : What amount should M recognize as compensation expense for 2019? On January 1, 2019, M Company granted 90,000 stock options to certain executives.
What is the annuity factor for the interest payments : Lev Corp issued $200 in principal of 3-year bonds with a 4.0% stated interest rate and semi-annual interest payments. What is the annuity factor
What is the weight for the risk-free asset : The risk-free asset. The risk- free rate is 4.5%. If the target expected return of this portfolio is 18%, what is the weight for the risk-free asset?
Calculate covariance between two securities of a portfolio : Calculate the covariance between the two securities of a portfolio that has 44% in stock X (with a standard deviation of 8.2% and an expected return of 12.1%)
What is the most critical factor : What is the most critical factor in determining the type, benefits and cost of a client's disability insurance coverage?
What is effect on earnings in year after options are granted : No forfeitures are anticipated. Ignoring taxes, what is the effect on earnings in the year after the options are granted to executives?
Demystify insurance policies for patients : A local hospital has asked you to come on board and create a new position in which staff members demystify insurance policies for patients. You have been given

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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