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

Question

1 Approved Answer

you are constructing a portfolio from a risky portfolio and a risk free asset. The risky portfolio has an expected return of 14.0% and a

you are constructing a portfolio from a risky portfolio and a risk free asset. The risky portfolio has an expected return of 14.0% and a standard deviation of 18.6%. The risk free asset returns 4.6%. If you invest 74% of your money in the risky portfolio and the rest in the risk free asset, what will your standard deviation be?

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 VAR Implementation Handbook

The VAR Implementation Handbook

Authors: Greg Gregoriou

1st Edition

007161513X, 978-0071615136

More Books

Students also viewed these Finance questions

Question

★★★★★
Find the coefficients a, b. c, and d so that the curve shown in the accompanying figure is the graph of the equation y = ax3 + bx2 + cx + d.

Answered: 1 week ago

Question

★★★★★
=+b) With what standard deviation?

Answered: 1 week ago

Question

★★★★★
What event precipitated Elaines posttraumatic stress disorder?

Answered: 1 week ago

Question

★★★★★
Prepare the necessary adjusting entries at December 31, 2011, for the Microchip Company for each of the following situations. Assume that no financial statements were prepared during the year and no...

Answered: 1 week ago

Question

★★★★★
you are constructing a portfolio from a risky portfolio and a risk free asset. The risky portfolio has an expected return of 14.0% and a standard deviation of 18.6%. The risk free asset returns 4.6%....

Answered: 1 week ago

Question

★★★★★
Presented below are selected transactions at Cheyenne Company for 2020. Jan. 1 Retired a piece of machinery that was purchased on January 1,2010 . The machine cost 64,400 on that date it had a useful...

Answered: 1 week ago

Question

★★★★★
1/ The cost of housing is based on supply and demand. Group of answer choices True False Source: https://www.youtube.com/watch?v=R0h8kfA4i_A 2/ According to the video, in New York City,...

Answered: 1 week ago

Question

★★★★★
Trevor has owned a large block of land for 3 years and has just decided to subdivide this large block into three allotments and build a home unit on each subdivided allotment using a builder for...

Answered: 1 week ago

Question

★★★★★
Henry Mintzberg's argument is that strategic management is an artistic endeavor. If he's right, then what value is there in systematic approaches to strategic planning such as those elaborated in...

Answered: 1 week ago

Question

★★★★★
Describe some situations in a math class that metaphorically fit the broken escalator situation (being stuck, not moving forward, something going wrong).

Answered: 1 week ago

Question

★★★★★
1. Please read this 1927 Supreme Court case and analyze it using the IRAC format, which was introduced in our first chapter. 5 Gong Lum v. Rice, 275 U.S. 78 (1927).pdf Download 5 Gong Lum v. Rice,...

Answered: 1 week ago

Question

★★★★★
It contained the correct shower gels, but not the correct body lotions. Instead of Jasmine and Ocean Mist, you received Country Rose and Citrus Breeze. File an e-mail claim with Soft n Glow, your...

Answered: 1 week ago

Question

★★★★★
You work for a company that owns several office buildings in your town. Your employers have decided to change all locks in their buildings from key to card access. Notify the tenants of each building...

Answered: 1 week ago

Question

★★★★★
For the past six years, Jet Printing has had a display at the regional business expo. Because booth spaces are assigned on a first-come, first-served basis, you always reserve your space and send...

Answered: 1 week ago

Previous Question Next Question