Quantitative finance, finance, Other Engineering

Assignment Help:
A fund manager’s high growth portfolio is made up of 80% (w1) in shares and 20% (w2 ) in bonds. Over the course of year 2010, the returns from each asset class are expected to have the following characteristics:

• 7% p.a. expected mean return from shares
• 3% p.a. expected mean return from bonds
• 9% p.a. standard deviation of returns from shares
• 5% p.a. standard deviation of returns from bonds
• zero covariance of share and bond returns.

Calculate:
(a) the variance of the portfolio
(b) the expected return on the portfolio.

Related Discussions:- Quantitative finance, finance

Cisco, how can i operate cisco switches without packet tracer?

how can i operate cisco switches without packet tracer?

Aeroengines - cfd, Essentially, the strategy of CFD is to replace the conti...

Essentially, the strategy of CFD is to replace the continuous problem domain with a discrete domain using a grid domain with a discrete domain using a grid. In a continuous doma

ENMIN5018, Design a detailed surface mine excavation plan. Detail developme...

Design a detailed surface mine excavation plan. Detail development requirements. Detail Production requirements including a full description of the method selected. Number of produ

Fluid mechanics, 2 horizontal flate plate 0.15mm apart and space between th...

2 horizontal flate plate 0.15mm apart and space between them is filled with an oil having viscosity 1poise the upper plate of area 1.5m2 is required to move with a speed of 0.5m/se

Engineering physics, Consider a conical pendulum with a bob of mass m=80kg ...

Consider a conical pendulum with a bob of mass m=80kg on a string of length L=10 m that makes an angle of 5 deg. with the vertical. Determine the horizontal and vertical component

Cost of debt, A company issues 15-year, $1,000 par-value bonds, with a coup...

A company issues 15-year, $1,000 par-value bonds, with a coupon rate of 5%. The bonds are sold for $619.70. The tax rate is 30%. Compute the cost of debt before taxes and after tax

Power engine - aircraft maintenance, Power Engine: Power producing engi...

Power Engine: Power producing engines come in two main forms Turboprop and turboshaft. a. Turboprop Engines. Turboprop engines extract most of the energy from the gas stream

Guides for the fire risk assessment, Guides for the fire risk assessment: ...

Guides for the fire risk assessment: In the UK, the Government produce guides for the FRA process that are free to download.   There are a range of guides covering  the ran

Write Your Message!

Captcha
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