Question
Consider the table below showing return and risk for two investment funds. Mutual Funds Returns Standard Deviation Fund A : A well diversified stock fund
Consider the table below showing return and risk for two investment funds.
Mutual Funds | Returns | Standard Deviation |
Fund A : A well diversified stock fund | 8% | 17% |
Fund B: A risk-free fund consisting entirely of Treasury bills | 3.5% | 0% |
2.A Calculate the return for a portfolio consisting of 70 % in fund A, and 30% in fund B. Show calculations
2.B Calculate the standard deviation for a portfolio consisting of 70 % in fund A, and 30%
in fund B. Show calculations
2.C Calculate the return for a portfolio consisting of 130 % in fund A in the context of CAPM. Show calculations
2.D Calculate the standard deviation for a portfolio consisting of 130 % in fund A in the context of CAPM. Show calculations
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Microeconomics
Authors: Christopher T.S. Ragan, Richard G Lipsey
14th canadian Edition
321866347, 978-0321866349
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