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Q. 1: Assume that tangent portfolio T has an expected return of 14%, with a standard deviation of 20%, and that the risk-free rate
Q. 1: Assume that tangent portfolio T has an expected return of 14%, with a standard deviation of 20%, and that the risk-free rate is 3%. (A) You choose to invest a total of $1,000. $350 is invested in portfolio T and S650 in the risk-free asset. What are the expected return and standard deviation of your portfolio? (B) Suppose you borrow $200 at the risk-free rate. Combining this with your original sum of $1,000, you invest a total of $1,200 in the risky asset. What are the expected return and standard deviation of your portfolio? Question 4: List three tasks that the interpreter for a dynamically scoped language must perform that the compiler would perform for a statically scoped language. Question 5: Compare & Contrast how run-time is impacted with dynamic vs static scoping rules. Question 6: When implementing dynamic scoping, what trade-offs need to be taken into consideration when choosing between a central table, or stack-trace implementation? Consider both data structures and algorithms. [Questions 8-9] Consider the following three assets: Asset A's expected return is 5% and return standard deviation is 25%. Asset B's expected return is 8% and return standard deviation is 32%. Asset C is a risk-free asset with 2% return. The correlation between assets A and B is -0.3. 8. Constructing a portfolio from assets A and B such that the expected return of the portfolio equals 7%, find the portfolio weights of assets A and B and compute the return standard deviation of the portfolio 9. Constructing a portfolio from assets A and C such that the expected return of the portfolio equals 2.5%, find the portfolio weights of assets A and C and compute the return standard deviation of the portfolio.
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