Business, 24.04.2020 15:18 mona92

You manage a risky portfolio with an expected rate of return of 22% and a standard deviation of 35%. The T-bill rate is 6%. Your risky portfolio includes the following investments in the given proportions:
Stock A 33 %
Stock B 36 %
Stock C 31 %
Suppose that your client decides to invest in your portfolio a proportion y of the total investment budget so that the overall portfolio will have an expected rate of return of 18%.
Required:
(a) What is the proportion y? (Round your answer to the nearest whole number. Omit the "%" sign in your response.)
(b) What are your client’s investment proportions in your three stocks and the T-bill fund? (Do not round intermediate calculations. Round your answers to 2 decimal places. Omit the "%" sign in your response.)

Answers: 1

Show answers

Another question on Business

Business, 22.06.2019 11:20

Money aggregates identify whether each of the following examples belongs in m1 or m2. if an example belongs in both, be sure to check both boxes. example m1 m2 gilberto has a roll of quarters that he just withdrew from the bank to do laundry. lorenzo has $25,000 in a money market account. neha has $8,000 in a two-year certificate of deposit (cd).

Answers: 3

Answer

Business, 22.06.2019 11:30

Schonhardt corporation's relevant range of activity is 2,500 units to 5,500 units. when it produces and sells 4,000 units, its average costs per unit are as follows: averagecost per unitdirect materials $ 7.60direct labor $ 2.90variable manufacturing overhead $ 1.65fixed manufacturing overhead $ 2.90fixed selling expense $ 0.95fixed administrative expense $ 0.65sales commissions $ 0.75variable administrative expense $ 0.65if 4,500 units are produced, the total amount of fixed manufacturing cost incurred is closest to: multiple choicea $16,800b $11,400c $11,600d $15,400

Answers: 3

Answer

Business, 22.06.2019 21:20

Label each of the following statements true, false, or uncertain. explain your choice carefully. a. workers benefit equally from the process of creative destruction. b. in the past two decades, the real wages of low-skill u.s. workers have declined relative to the real wages of high-skill workers. c. technological progress leads to a decrease in employment if, and only if, the increase in output is smaller than the increase in productivity. d. the apparent decrease in the natural rate of unemployment in the united states in the second-half of the 1990s can be explained by the fact that productivity growth was unexpectedly high during that period.

Answers: 3

Answer

Business, 23.06.2019 08:00

In a high school with 3000 students, counselors are putting together a math tutoring program for the neighboring middle school. they plan to invite high school students with high average test scores to tutor middle school students, and they would like to offer gift cards to the student tutors. the counselors have a spreadsheet showing each student’s average test scores, and in order to find out how many gift cards they should purchase, the counselors need to count how many students would qualify to become tutors. which type of function would best the counselors determine the number of eligible students?

Answers: 3

Answer

You know the right answer?

You manage a risky portfolio with an expected rate of return of 22% and a standard deviation of 35%....

Questions