What will be the dollar values of your positions

Assignment Help Financial Management

Reference no: EM131882011

You are considering investing $1,000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 5% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 60% and 40%. X has an expected rate of return of 14%, and Y has an expected rate of return of 10%. What will be the dollar values of your positions in X, Y, and Treasury bills, respectively, if you decide to hold a complete portfolio that has an expected return of 8%?

Reference no: EM131882011

Questions Cloud

Analyze the dreamliner program : Why did Boeing adopt the radical change approach for designing and developing the 787 Dreamliner? What were the risks? In your opinion, was it a good move?

What percentage of your money must you invest in the T-bill : If you desire to form a portfolio with an expected rate of return of 0.11, what percentage of your money must you invest in the T-bill and P?

What outside factors come together for Santa Cruz Bicycles : Bicycle enthusiasts not only love the ride their bikes provide, but they also are often willing to pay for newer technology especially when it will increase.

What is the SR for the portfolio : What is the SR for the portfolio P? What is the change in SR if the coefficient of correlation is changed to -0.20? Assume TB rate is 5%.

What will be the dollar values of your positions : You are considering investing $1,000 in a complete portfolio. What will be the dollar values of your positions in X, Y, and Treasury bills,

How does the system enable Tesco to increase the value : Tesco, the U.K. retail grocery chain, used their CRM system to generate annual incremental sales of £100 million. Using a frequent-shopper card.

Explain customer relationship management process : What might an integrated supply chain look like for a financial services company such as an insurance provider or a bank?

What could have been done to minimize risk of failure : Have you been involved with a company doing a redesign of its business processes? If so, what were the key things that went right? What went wrong?

Calculate the net present value for this investment : calculate the Net Present Value for this investment: First-year NOI: $18,775 with an annual growth rate of 7%; Purchase Price = $ 520,000;

User Account

All Pages