Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

please show work on paper thank you 1:25 Expert Q&A Done Consider the following capital market expectations Ein SD Stock 18% 21% Bond B 8.5%

please show work on paper thank you
image text in transcribed
1:25 Expert Q&A Done Consider the following capital market expectations Ein SD Stock 18% 21% Bond B 8.5% T-Bits 5 0 11.. Find the optimal portfolio mix (weights) of stock and bond the covariance between the stock and the bond return is-0.0121 12. Find the side of this optimal portfolio a Calculate the varande square foot it gmapside 5. Answer: approx. 5% 13. Find the most efficient way to get 8% from investing in stock, bond, and rolls Need to calculate what percentage you need to invest in tisky This was they thing in class That means, calculate y fiest (amount invest in risky amount in stock and bonds) 1. T-bills = 1-amount invested in risky 2. Answer approx. 50% risky: 50% risk free a 50% risky (find how much in stock, how much in bond) 14. What is the STDEV of the above portfolio? 1:25 Expert Q&A Done Consider the following capital market expectations Ein SD Stock 18% 21% Bond B 8.5% T-Bits 5 0 11.. Find the optimal portfolio mix (weights) of stock and bond the covariance between the stock and the bond return is-0.0121 12. Find the side of this optimal portfolio a Calculate the varande square foot it gmapside 5. Answer: approx. 5% 13. Find the most efficient way to get 8% from investing in stock, bond, and rolls Need to calculate what percentage you need to invest in tisky This was they thing in class That means, calculate y fiest (amount invest in risky amount in stock and bonds) 1. T-bills = 1-amount invested in risky 2. Answer approx. 50% risky: 50% risk free a 50% risky (find how much in stock, how much in bond) 14. What is the STDEV of the above portfolio

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

The Evolution Of Finance

Authors: Barbara Guth

1st Edition

1633377261, 978-1633377264

More Books

Students also viewed these Finance questions

Question

Relational Contexts in Organizations

Answered: 1 week ago