FREE Trial
Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

PLEASE SEE ATTACHMENT Assume you have a $200,000 portfolio and you invest $75,000 in stock X and the remainder in stock Y.If the risk-free rate

PLEASE SEE ATTACHMENT

Assume you have a $200,000 portfolio and you invest $75,000 in stock X and the remainder in stock Y.If the risk-free rate of return is 3.50%, and we assume that the standard deviation of the excess returns on the portfolio is 18%, what is the Sharpe Ratio for this portfolio formed from stocks X and Y?

image text in transcribed

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

Business Mathematics

Business Mathematics

Authors: Gary Clendenen, Stanley A Salzman, Charles D Miller

12th Edition

0135109787, 9780135109786

More Books

Students also viewed these Finance questions

Question

★★★★★
James and Susan Wagner have assets with fair market values of $12,700,000 and $4,800,000, respectively. James has been diagnosed with a terminal illness and is expected to pass away within the...

Answered: 1 week ago

Question

★★★★★
What percent of the babies born within each gestation period have a low birth weight (under 5.5 pounds)? Explain your reasoning. (a) Under 28 weeks (b) 32 to 33 weeks (c) 40 weeks (d) 42 weeks and...

Answered: 1 week ago

Question

★★★★★
Explain early views of learning through contiguity and classical conditioning and describe their implications for teaching. Explain operant conditioning, particularly the differences and similarities...

Answered: 1 week ago

Question

★★★★★
1. What are the ethical issues in this case from an employees point of view? From managements point of view? From a consumers point of view? 2. Who are the stakeholders , and what are their stakes?...

Answered: 1 week ago

Question

★★★★★
What term describes behavior modification through consequences? a ) Reinforcement b ) Conditioning c ) Extinction d ) Shaping

Answered: 1 week ago

Question

★★★★★
Case 2. (25 points) The manager of Gamma Motel, a small 40-room roadside motel, is seeking a 90.000$ bank loan at a 10% annual rate of interest. The local bank considering the loan application...

Answered: 1 week ago

Question

★★★★★
Write one short paragraphs about the target market segments for your client and why you think this company and product will be successful. Are there economic, social, or other trends that make this a...

Answered: 1 week ago

Question

★★★★★
Quiz Instructions: Term Structure Models II and Introduction to Credit Derivatives Questions 1 and 2 should be answered by building and calibrating a 10-period Black-Derman-Toy model for the...

Answered: 1 week ago

Question

★★★★★
a1 a2 a3 15. (23) Let A = b b2 b3 and B = = C1 4a1b1 4a2+ b2 4a3+b3 C2 C3 C1 C2 C3 3b1 3b2 3b3 If det(B) = 6, then (1) det(A) = and (4) rank(A-1) = (2) det(2ABA-) = (3) det(BBT) =

Answered: 1 week ago

Question

★★★★★
For Exercises 27-32, refer to functions s, t, and v. Find the indicated function and write the domain in interval notation. (See Example 3) s(x) 27. (s. 1)(x) 31. (sv)(x) = x-2 x-9 x-3 t(x) = bail...

Answered: 1 week ago

Question

★★★★★
Demonstrate how the host from computer A identifying the destination of computer G before A can start sending file to the computer. == SWITCH ROUTER SWITCH A B C G H

Answered: 1 week ago

Question

★★★★★
2024. from the company's cash ledger for the month ending Feb Date Amount Number Date Amount Deposits: 2/4 $1,850 Checks: 323 2/12 $1,650 2/11 1,450 324 2/19 1,350 2/18 2,350 325 2/27 400 2/25 3,250...

Answered: 1 week ago

Question

★★★★★
11. Now consider the different goals you have for your life in the future. See these goals in relation to your core values and your roles. How do goals affect your roles and your values? Development...

Answered: 1 week ago

Question

★★★★★
Does this future have a sound, an image, a taste or a smell that you can evoke here and now?

Answered: 1 week ago

Question

★★★★★
2. In this chapter, the reader should reflect on the following concepts: benchmark-ing, competence development, thought dispositions, identity and perception.

Answered: 1 week ago

Previous Question Next Question