Question
1.If you put 66% into the mutual fund, what is your expected rate of return for the complete portfolio? 2.What is the standard deviation of
1.If you put 66% into the mutual fund, what is your expected rate of return for the complete portfolio?
2.What is the standard deviation of returns if you put 66% into the mutual fund?
3.Since you're risk-averse, you are only willing to tolerate a standard deviation of 10% on the complete portfolio. How much money should you put into T-bills (in $)?
4.What's the Sharpe ratio of the complete portfolio with c=10%?
5.If you wanted to achieve an expected return of 6% for the complete portfolio instead, how much money would you have to invest in the mutual fund (in $)?
You have $7,000 to invest and are deciding between investing in an equity mutual fund and Treasury bills. The fund has an expected return of 13% and a standard deviation of returns of 16%. T-bills have a return of 3%
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