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Currently your friend has 562,327,000 invested in the ABC fund (which has an expected return of 125 and a standard deviation of 19%) and 513,186.000

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Currently your friend has 562,327,000 invested in the ABC fund (which has an expected return of 125 and a standard deviation of 19%) and 513,186.000 in the risk free asset (which earne 24.). Let "RET" stand for overall expected return your friend has for their overall portfolio (this will have a value that is in between ABC's expected return and the rise free rate you will need to calculate it) You are trying to convince your friend that instead of investing in a combination of ABC and the risk free, would be better to use a combination of the XYZ Fund which has expected return of 15 and a standard deviation of 20) and the risk free asset. If your friend switches thing to invest the same total amount of money in a way to sell have an expected return of RET as before, what would be the standard deviation your friend would face for their overall portfolio Note that when your friend witches, the total dated overall will be the same as before BUT the relative Investment weights will change the amount invested in XYZ will differ from those that were invested in Aac, and the amount invested in the risk-free will also change Mwe Question 4 General Gengiver with and but only candy Si Currently your friend has 542,327,000 invested in the ABC Fund which has an expected return of 120 and standard deviation of 19 and 1.18.00 in the rise asset lichame 2. Let HET stand for overall expected return your friends for their overall portfolihis will have a value that is labefwees aspected return and the risk free rate you will need to calculate it You are trying to convince your friend that instead of investing in a combination of ABC and the risk tree set it would be better to use a combination at the xyz hand which has expected return of RET as before, what would be the standard deviation your friend would face for their everal portfolio Note that when your friend which the taste overall will be the same as before BUT the relative investment weights will change the mount invested in XYZ w Goth were in cand te amo the risk free will also change Express your answer in decimal format, rounded and accurate to decimal surmple. If you calculate your friend we canard deviation of 21 h entered as 0.1235 of the hare you want to the RADHE INSTRUCTIONS THAT ARE INCLUDED WITH ANY QUESTION Milio you to ganheden way they all be your way them PLEASE NOTE YOU SAVE YOUR QUE AND LATER OPEN IT AGAIN. YOU WILL NEED TO REWORK ALL PROBLEMS FROM SCRATCH AND READ THE PROBLEMS CAMIFULLY AS YOU DO SO This students This wanneer Your broma Mwili MO on 4 Barranca ley your final round the burder bort GBR The winter you berdean esperanto ding the nearest dimechobe 24 appropria for Mashindwhite 12 and thing he height yout. A dedete wr, but only 044 Praca w wywisto cal 16 Currently your friend has 562,127,000 invested in the ADC fund (which has an expected return of 12 and a standard deviation of 19) and 113,186.000 in the risk tree asset which came 2%). Let "RET" stand for overall expected return your friend has for their overall portfolio (this will have a value that is in between ABCs expected return and the risk-free rate-you will need to calculate it) You are trying to convince your friend that instead of Investing in a combination of ABC and the risk free asset. It would be better to use a combination of the XYZ Fund (which has an expected return of 15% and a standard deviation of 20%) and the risk-free asset. If your friend switches, choosing to invest the same total amount of money but in a way to still have an expected return of RET as before, what would be the standard deviation your friend would face for the overall portfolio Note that when your friend switches, the total collar invested overall will be the same as before BUT the relative investment weights will change the amount invested in XYZ will differ from those that were invested in Anc, and the amount invested in the risk-free will also change Express your answer in decimal format, rounded and accurate to A decimal places. For example, if you calculate your friend would tace a standard deviation of 12.45%, this should be entered as 0.1235. Motorder to response

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