Reference no: EM132826040
You invest $100 in a risky asset with an expected rate of return of 15% and a standard deviation of 15% and a T-bIll with a rate of return of 5% (and a standard deviation of 0).
1 What percentages of your money must be invested in the risky asset and the risk-free asset, respectively, to form a portfolio with an expected return of 13%?
A) 20% and 80%
B) 25% and 75%
C) 80% and 20%
D) 75% and 25%
2 What percentages of your money must be invested in the risk-free asset and the risky asset, respectively, to form a portfolio with a standard deviation of 8%?
A) 67% and 33%
B) 53% and 47%
C) 80% and 20%
D) 47% and 53%
3 A portfolio that has an expected return of 23% is formed by
A) borrowing $40 at the risk-free rate and investing the total amount ($140) in the risky asset.
B) borrowing $80 at the risk-free rate and investing the total amount ($180) in the risky asset.
C) borrowing $60 at the risk-free rate and investing the total amount ($160) in the risky asset.
D) borrowing $85 at the risk-free rate and investing the total amount ($185) in the risky asset.
4 The slope of the CAL forward with the risky asset and the risk-free asset is equal to
A) 0.5667
B) 0.6667
C) 0.7667
D) 0.4667
|
Prepare a income statement for the company
: Manufacturing overhead costs were applied to production. Based on the information above, prepare a income statement for the company - assume a 20% tax rate
|
|
Does the essay use proper sentence structure
: Does the essay meet the assignment criteria in terms of subject matter? Are the ideas presented appropriate for the assignment?
|
|
How can your experiences in practicum help you achieve aims
: Review your Clinical Skills Self-Assessment Form you submitted last week, and think about areas for which you would like to gain application-level experience.
|
|
What a gap analysis is including how gaps are defined
: What a "gap analysis" is including how gaps are defined and measured. Be sure to address how gap analysis relates to needs, requirements
|
|
What percentages of your money must be invested
: 1 What percentages of your money must be invested in the risky asset and the risk-free asset, respectively, to form a portfolio with an expected return of 13%?
|
|
How the patients diet affects the persons health
: The purpose of this assignment is to synthesize and apply the knowledge you gained in class into a well-written research paper. For this assignment, you will.
|
|
What nominal annual interest rate
: The second plan requires you to make monthly payments of $137.41, payable at the end of each month for 3 years. What nominal annual interest rate
|
|
What is corporate social responsibility to a company
: What is Corporate social responsibility (CSR) to a company? What is the relationship between CSR and profitability to a company?
|
|
What is the weighted average coupon for pool at origination
: 100 mortgages with initial balance of $270,081, interest rate 2.6%, issued for 30 years with monthly payments
|