Answered step by step
Verified Expert Solution
Question
1 Approved Answer
Please answer all 3, thank you 1. An investor owns the following portfolio today Stock # of Shares Market value Expected annual return IBM 100
Please answer all 3, thank you
1. An investor owns the following portfolio today Stock # of Shares Market value Expected annual return IBM 100 $141.23 7% STO $16.60 13% 220 $33.48 8% What is the investor's expected rate of return after one year? 2. IMF manages a $30 billion portfolio with an expected return equal to 15% and standard deviation equal to 22%. The risk-free rate equals 5%. One of the clients desires a portfolio standard deviation equal to 15%. Using the capital asset line (CAL), what is the highest expected return for the client? 3. Using the information in the following figure, what are the expected return and standard deviation of the two-asset portfolio? Characteristics for a Two-Stock Portfolio IBM Apple Amount invested Expected return Standard deviation Correlation $40,000 11% 15% 0.3 $60,000 25% 20%Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started