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

Question

1 Approved Answer

The return on the risky portfolio is 15%. The risk-free rate, as well as the investor's borrowing rate, is 10%. The standard deviation of return

image text in transcribed
The return on the risky portfolio is 15%. The risk-free rate, as well as the investor's borrowing rate, is 10%. The standard deviation of return on the risky portfolio is 20%. If you invest 70% of your assets in the risky portfolio, what is the standard deviation of your complete portfolio? 6% 8.75% 10% 14%

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 Budget Building Book For Nonprofits

The Budget Building Book For Nonprofits

Authors: Murray Dropkin, Jim Halpin, Bill La Touche

2nd Edition

0787996033, 978-0787996031

More Books

Students also viewed these Finance questions

Question

★★★★★
The mast of a sloop is supported at bow and stern by stainless steel wires, the forestay and backstay, anchored 10 m apart (Figure). The 12- m-long mast weighs 800 N and stands vertically on the deck...

Answered: 1 week ago

Question

★★★★★
6. What is a Bernoulli trial?

Answered: 1 week ago

Question

★★★★★
Use the 2010 GSS file (GSS10SSDS) to investigate the relationship between the respondents education (EDUC) and the education received by his or her father and mother (PAEDUC and MAEDUC,...

Answered: 1 week ago

Question

★★★★★
Question 2 (a) Silver Corporation has a $20 million loan due at the end of the year. Silver's total assets will have a market value of only $15 million when the loan comes due. Currently Silver has...

Answered: 1 week ago

Question

★★★★★
Quail, Inc., has a contribution margin of 30% and fixed costs of $98,280. What is the break-even point in sales dollars? Multiple Choice $68,796 $327,600 $140,400 $29,484

Answered: 1 week ago

Question

★★★★★
Given: f(1)=2, f'(1)=4, f'(2)=1; Write the equation of the normal line at x=1.

Answered: 1 week ago

Question

★★★★★
Discuss about a kaizen event (or kaizen blitz) that once took place in your work environment and how does it differs from other traditional kaizen applications? (10 Marks)

Answered: 1 week ago

Question

★★★★★
The required rate of return of stock ABC, which has a beta of 1.25, is 10.75%. The required rate of return of stock XYZ, which has a beta of 0.80, is 8.5%. What is the required rate of return of...

Answered: 1 week ago

Question

★★★★★
In the game Clacker, the numbers 1 through 12 are initially displayed. The player throws two dice and may cover the number representing the total or the two numbers on the dice. For example, for a...

Answered: 1 week ago

Question

★★★★★
The potential labour hours available for a large energy complex were found to be 5.4 million hours. The non-productive activities expressed in thousands of labour hours were: 360 for holidays and...

Answered: 1 week ago

Question

★★★★★
outline some of the current issues facing HR managers

Answered: 1 week ago

Question

★★★★★
demonstrate how human resource management can make a difference by adding value to an organisation

Answered: 1 week ago

Question

★★★★★
outline the range of activities with which practitioners of human resource management are likely to be involved

Answered: 1 week ago

Previous Question Next Question