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

Question

1 Approved Answer

Suppose risk-free rate is 0.05 and the expected return of the risky portfolio is 0.08 with 0.3 standard deviation. Your complete portfolio has 0.0375 as

Suppose risk-free rate is 0.05 and the expected return of the risky portfolio is 0.08 with 0.3 standard deviation. Your complete portfolio has 0.0375 as return variance. What is the risk premium of your complete portfolio?

0.00375

0.019364917

0.051639778

0.01

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

Corporate Finance Theory And Practice

Corporate Finance Theory And Practice

Authors: Aswath Damodaran

2nd Edition

0471283320, 9780471283324

More Books

Students also viewed these Finance questions

Question

★★★★★
Suppose that E = {Adam}. Compute the probability of Ec.

Answered: 1 week ago

Question

★★★★★
=+35. HDI diagnostics. In Chapter 17, Exercise 36 we found a model for HDI (the UNs Human Development Index) from 7 socio-economic variables for 96 countries. Using software that provides regression...

Answered: 1 week ago

Question

★★★★★
Using your accounting knowledge, fill in the blanks in the following separate income statements a through e. Identify any negative amount by putting it inparentheses. Sales Cost of goods sold .. ....

Answered: 1 week ago

Question

★★★★★
23 Dr. Pelosi has been a professor at the University of London for over two decades. He leads a modest Lifestyle and he always had enough extra funds to enjoy vacations with his wife, provide a good...

Answered: 1 week ago

Question

★★★★★
Kennedy Prisby, age 33, is single and has no dependents. Her social security number is 111-22-3333. Her address is 101 North Fork Ave., Cedar City, UT 84720. She has no intention of donating to the...

Answered: 1 week ago

Question

★★★★★
A researcher wants to know if the clothes a woman wears is a factor in her GPA. The table below shows data that was collected from a survey. Use the R window to answer the question below: library...

Answered: 1 week ago

Question

★★★★★
The critical path assumes four facts. What are they? What is a useful scheduling tool to keep track of the critical path and increase the probability of on time completion?

Answered: 1 week ago

Question

★★★★★
Turner Products develops its manufacturing overhead rate from the current annual budget. The manufacturing overhead budget for 2017 is based on budgeted output of 660,000 ?units, requiring 3,300,000...

Answered: 1 week ago

Question

★★★★★
Record the following transactions in proper journal entry format on the General Journal form provided. Date Dec Transaction 1 James Spartan invested $20,000 in Spartan Repair Services. 10 5 6 220 25...

Answered: 1 week ago

Question

★★★★★
600 lb 20 0.5 ft 30 30 5 ft

Answered: 1 week ago

Question

★★★★★
Problem 1: The nonlinear model of the Skydiver is given by: dv dt = 9 m The exact solution of the expression is gm gc v(t) = tanh m where g = 9.81 m/s, c = 0.25 kg/s, t = 4s, and v = 36 m/s. Use the...

Answered: 1 week ago

Previous Question Next Question