Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

15 . A margin user has a situation where the riskfree rate is 6% and the risky portfolio has an expected return of 12% with

15. A margin user has a situation where the riskfree rate is 6% and the risky portfolio has an expected return of 12% with a standard deviation of 15%. If the proportion in risky portfolio is 1.8, the expected return is: (a) 14.6%. (b) 19.2%. (c) 21.6%. (d) 16.8%. 16. A margin user has a proportion 1.3 invested in the risky portfolio that has .4 in A with an expected return of 14%, .6 in B with an expected return of 18%. If the riskfree rate is 5%, her expected return is (a) 21.3%. (b) 16.4%. (c) 19.8%. (d) 18.2%.

Please answer #15 & #16 in detail. I think the answers are D 16.8 for #15 and and C 19.8 for #16 but I need full detailed explanation

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Real Life Money An Honest Guide To Taking Control Of Your Finances

Authors: Clare Seal

1st Edition

1472272293, 978-1472272294

More Books

Students also viewed these Finance questions

Question

Define the goals of persuasive speaking

Answered: 1 week ago