Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Oct 06, 2024

The risk-free rate is 5.25%. The expected return on the market is 12% with a standard deviation of 18%. What is the standard deviation of

image text in transcribed

The risk-free rate is 5.25%. The expected return on the market is 12% with a standard deviation of 18%. What is the standard deviation of an efficient portfolio with a 16% expected return? 28.67%10.12%7.33%19.11%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

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

Pricing In General Insurance

Authors: Pietro Parodi

2nd Edition

0367769034,1000860833

More Books

Students also viewed these Finance questions

Question

★★★★★

When the Accounting Principles Board was founded in 1959, it planned to establish financial accounting standards using empirical research and logical reasoning only; the role of political action was...

Answered: 1 week ago

Question

★★★★★

Glassey Corporation uses activity-based costing to assign overhead costs to products. Overhead costs have already been allocated to the company's three activity cost pools as follows: Processing,...

Answered: 1 week ago

Question

★★★★★

In your experience, does the nature of crisis trump tendencies to conform or does it increase the tendency to conform?

Answered: 1 week ago

Question

★★★★★

Suppose Nordstrom, Inc., which operates department stores in numerous states, has the following selected financial statement data for the year ending January 30, 2014. For the year, net sales were...

Answered: 1 week ago

Question

★★★★★

Use a two period binomial tree to price a 4 months European style put option on YMMV struck at $20. The spot price of YMMV is $20 and it pays no dividends. Assume u/d = 4/3, Pup= 1/3, and r= 9.50%...

Answered: 1 week ago

Question

★★★★★

A transfer function depicting a digital system is given by H ( z ) = 1 0 ( z + 1 ) ( z + 0 . 7 5 ) . a . Determine the impulse response h ( n ) and step response. b . Determine the system response y...

Answered: 1 week ago

Question

★★★★★

Muallim Construction Berhad is a sustainable builder and renewable energy engineering, procurement and construction contractor. As businesses increasingly integrate social and environmental concerns...

Answered: 1 week ago

Question

★★★★★

23-17 Analysis of return on invested assets, comparison of two divisions. DuPont method. Global Data, Inc., has two divisions: Test Preparation and Language Arts. Results (in millions) for the past...

Answered: 1 week ago

Question

★★★★★

In setting transfer prices for goods and services moving between various points of an MNC organisational structure, senior management recognises that a transfer price is likely to be A) arbitrary....

Answered: 1 week ago

Question

★★★★★

Gelbart Company manufactures gas grills. Fixed costs amount to $25,587,900 per year. Variable costs per gas grill are $315, and the average price per gas grill is $900. 1. How many gas grills must...

Answered: 1 week ago

Question

★★★★★

7 2 points 1. Use the accounting equation to compute the missing financial statement amounts. 2. Use the expanded accounting equation to compute the missing financial statement amounts. Complete this...

Answered: 1 week ago

Previous Question Next Question