Example: 2 Risky Assets ■ Suppose we have two assets, US and JP, with: Mean Volatility US E[R₁] = 13.6% 0₁ = 15.4% JP E[R₂] = 15.0% σ₂ = 23.0% 02 and with correlation p = 27%. ■ If an investor holds w₁ = 60% in the US and w₂ = 40% in JP, what is the expected return and the volatility of the portfolio?

Hi, Please answer this question with the information on the slide attached  Take the US and JP assets we saw in class. What is the volatility of a portfolio with w1=40% in the US asset and w2=60% in the JP asset? It's equal to ___% (answer a number with one decimal, e.g., 12.3. In the example in class it was 14.7)

I need this question answer general Accounting

Assume that you are considering investing in two risky assets, namely PKX and XIY, with the following probability distribution. Assume that short selling is allowed. Stock РКХ XIY State of the world Probability Return (%) Return (%) 1 0.25 18 2 0.30 5 -3 3 0.20 12 15 4 0.10 4 12 0.15 6 1 1. Calculate the expected return and risk for each of these assets. Interpret. 2. Consider a portfolio that contains PKX and XIY. Note that XIY comprises 30% of the portfolio. What is the expected return and risk of this portfolio? 3. How will your answer in (2) change if XIY comprises 20% of the portfolio only? Comment on your findings.

QUESTION 2 Exhibit 6.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   Asset (A) Asset (B) E(RA) = 25% E(RB) = 15% (σA) = 18% (σB) = 11% WA = 0.75 WB = 0.25 COVA,B = −0.0009   Refer to Exhibit 6.2. What is the expected return of a portfolio of two risky assets if the expected return E(Ri), standard deviation ( σ i ), covariance (COVi,j), and asset weight (Wi) are as shown above?   a. 18.64%   b. 22.5%   c. 11%   d. 13.65%   e. 20.0%

Consider the following information (Assume that Security M and Security N are in the same financial market):                   Standard Deviation                  BetaSecurity M        20%                                   1.25Security N        30%                                    0.80 Which security has more total risk? Group of answer choices Security M Security N Equal

Assume we live in a world where there exist only two risky assets and a risk-free asset with a return of 2%. You are given the following information: Risky Asset Market Cap E(r) В 02 (variance) A B ($Mil) 661 7.59% 0.9124 0.04 339 9.17% 1.1697. 0.09 OAB (covariance) 0.015 1) What would be the expected return on the market portfolio? (hint: how is the market portfolio weighted?) 2) What is the covariance between Risky Asset A and the market portfolio (i.c. σA,M)? (covariance "FOIL"...? Actually more than one way to solve for this) 3) What is the variance of the market portfolio? 4) What is the systematic risk component of Stock A's total variance? (hint: not systematic risk in terms of Beta, but systematic risk in terms of variance) Multiple Choice О 1) 0.0759 2) 0.04043 3) 0.03456 4) 0.04728 1) 0.0813 2) 0.04043 3) 0.03015

Security A, standard deviation = 25% beta = 1.5 Security B, standard deviation = 40% beta = 1/3   If both securities have the same return, which should I invest in? Explain using knowledge of Capital Asset Pricing Model

Consider the following information (Assume that Security M and Security N are in the same financial market):                           Standard Deviation                     BetaSecurity M             20%                                         1.25Security N              30%                                        0.80 Which security should have higher expected return? Group of answer choices Security M Security N Equal

<Urgent> please answer M9,M10,M11