Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Assume you manage a risky fund with an expected rate of return of 20% and a standard deviation of 32%. The T-bill rate is 4%.

image text in transcribed
Assume you manage a risky fund with an expected rate of return of 20% and a standard deviation of 32%. The T-bill rate is 4%. Your client wishes to form a portfolio with a 24% standard deviation (by investing ly) in your fund and in T-bills). What is the proportion in your risky fund would create such a portfolio? (Type your answer as a percent, eg. 10.50 for 10.5%) Question 13 4 pts Assume you manage a risky fund with an expected rate of return of 20% and a standard deviation of 32%. The T-bill rate is 4%. Your client wishes to invest in your risky fund a proportion y of total assets so that his portfolio has an expected return of 20% What is the standard deviation of this new portfolio? (Type your answer as a percent, eg "10.50 for 10.5%) Question 14 4 pts Kelly decided to accept the risk and purchased a high growth stock. Her returns for the past five years are 30 percent, 25 percent, -40 percent, 12 percent, and -10 percent, respectively. What is the sample standard deviation of these returns? (Type your answer as a percent. eg "10.50" for 10.5%) MacBook Air FS FT % & 4 5 6 7 8 8 9 0 E R T Y U 0

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

Contemporary Financial Management

Authors: R. Charles Moyer, William J. Kretlow, James R. Mcguigan

7th Edition

0538877766, 9780538877763

More Books

Students also viewed these Finance questions

Question

=+d. Write at least five sentences or phrases for body copy.

Answered: 1 week ago

Question

=+b. Create a tagline.

Answered: 1 week ago