Expected Return SD (s) Correlation Coefficient         Bond Fund 10% 10% -0.2         Stock Fund 16% 30%                                           If the risk-free rate of return is 8%, what is the proportion of the optimal (tangent) risky portfolio, invested in Stock Fund?

Q: Calculate the profit or loss for the portfoli

A: The profit or loss can be determined by subtracting the purchase price of securities from the market…

Q: Portfolio Rp Op 12% 29% 1.25 Y 11 24 1.10 8 14 .75 Market 10 19 1.00 Risk-free 4 0 0

A: Sharpe Ratio= Expected Return-Risk free rate /Standard Deviation   Treynor Ratio= Portfolio…

Q: equired: sing the information in the tables above, please calculate the contribution each stock…

A: Contribution to portfolio return is defined as the product of individual stock with its weight in…

Q: Consider a portfolio consisting of the following three stocks: The volatility of the market…

A: By using the CAPM approach, the expected return of the stock is calculated. A portfolio consists of…

Q: The optimal risky portfolio has an expected return of 15% and a standard deviation of 10%. The…

A: Optimal risky portfolio is suitable to risk averse investors who want to minimise their investment…

Q: Find the Expected Return on the Market Portfolio given that the Cost of Equity is 14% and Risk-Free…

A: A model that represents the relationship of the required return and beta of a particular asset is…

Q: Consider the following information:       Rate of Return if State Occurs State of Probability of…

A: Step 1 A portfolio that has been perfectly balanced between risk and return is said to be optimal.…

Q: tandard Deviation: 10.56% Average Risk Free Rate: 2.18% Using these figures: a) Select the best…

A: The portfolio should have good return but should be also less risky so both should be there to be…

Q: Expected Return SD (s) Correlation Coefficient Bond Fund 10% 10% -0.2 Stock Fund 16% 30%…

A: Formula Weight of stock fund = [SD12-P1,2*SD1*SD2]/[SD12+SD22-2*P1,2*SD1*SD2] Where SD1 - Standard…

Q: If the risk free rate is 6 %, the expected return on the market portfolio is 12% and the beta of…

A: The Capital Asset Pricing Model (CAPM) is the model which shows the relationship between the…

Q: Risk and Rates of Return; Risk in Portfolio Context holding a partfilio with the following You are…

A: The portfolio require return is calculated with the help of CAPM equation

Q: he risk-free rate is 8% and the expected return on a market portfolio is 13%. If a share has a beta…

A: Risk free rate = 8% Market return = 13% Stock beta = 1.20

Q: Assuming risk free rate to be 2% p.a while market return is expected to be 8% return with a Standard…

A: Given: Risk free rate = 2% Market return = 8% Standard deviation = 10% Portfolio risk = 5%

Q: You are investing in a portfolio consisting two shares - D and E. You plan to invest 70% of your…

A: the expected return of a portfolio is weighted average return of individual stocks or funds or…

Q: Suppose you form a portfolio consisting of $31,000 invested in a mutual fund with beta of 1.6,…

A: Beta = 1.6Expected market risk premium = 6.3%Risk-free rate (Rf) = 0.8%According to Capital Asset…

Q: Consider the following information: Rate of Return if State Occurs Probability of State State of…

A: Formula

Q: Give detailed solution

A: ( I solved this problem before so I am just providing you solution and if you have any questions…

Q: State of Economy Probability of State Return on Asset D in State Return on Asset E in State…

A: expected portfolio return = sum of (probability * portfolio return)

Q: The market portfolio has an excess return of 8% and volatility of 15%. The risk free rate is 5%.…

A: Minimum required return (CAPM) = Rf+ [β×(Rm-Rf)]

Q: I will have info on 2 portfolios and the market benchmark, and you will calculate the CAPM = Rf +…

A: The question gives the following information:

Q: You are investing in a portfolio consisting two shares - D and E. You plan to invest 70% of your…

A: Expected retun on a portfolio is calculated as below: It can also be calculated by calculating the…

Q: The risk-free rate is 2% and the expected return on a market portfolio is 6%. If a share has a beta…

A: As per CAPM Ri = Rf + B (Rm - Rf) Where Ri = Return on equity Rf = Risk free rate of return B = Beta…

Q: compared to the company stock?

A: “Since you have asked multiple question, we will solve the first question for you. If youwant any…

Q: Expected Return Standard Deviation Beta K 20% 12% 1.8 Y 21% 10% 2.2 M 10% 10% 0.8 me the risk-free…

A: CAPM model is used to find risk based required rate based on the risk free rate, market rate and…

Q: Risk free rate is 3%, you predict market expected return to be 11%, beta for stock x is 1.25, beta…

A: Given information: Risk free rate is 3% Expected market return is 11% Beta of stock X is 1.25, Beta…

Q: Expected Return on the market HPR Beta Risk-free rate Stock ABC 15.68% 1.2 1% 6.68% What is the…

A: Alpha is the abnormal return which the investors get and is above the equilibrium or expected return…

Q: sisting of the föllowir STOCK OR SECURITY 1. F 2. 3 4. The risk-free rate is 4 pe a. Calculate the…

A: Note : As per our guidelines, we can only answer three subparts at once. Please post other subparts…

Q: Consider the following well diversified portfolios A: expected ROR =7% with beta=0.5, B: expected…

A: we will make a new portfolio D with the help of portfolio A and B with equal share. Thus, the return…

Q: Find the Beta for Stock Y given the Expected Return of Stock Y is 18.4% The expected return on the…

A: A stock with a beta higher than 1.0 fluctuates far more than the market with age. The beta of a…

Q: 2. Capital Asset Pricing Model Risk-free rate : 2.5% Market rate of return: 8.5% Beta: .90 Using the…

A: In the given question we are required to calculate the risk of the stock using Capital asset pricing…

Q: Provide detailed solution..

A: Part 2: ExplanationStep 1: Calculate the excess returnsStock Fund: 13.00% - 1.50% = 11.50%Bond Fund:…

Q: If your portfolio is invested 40 percent each in A and B and 20 percent in C, what is the…

A: Answer a.Weight of Stock A = 0.40Weight of Stock B = 0.40Weight of Stock C = 0.20Boom:Expected…

Q: Consider the following information about three stocks: State of Economy Probability of State of…

A: Weights:Stock A: 40%Stock B: 40%Stock C: 20%

Q: nsider the following information:                              Rate of Return if State Occurs State…

A: Portfolio return With expected return of stock A (rA), expected return of stock B (rB), expected…

Q: Description Provide the portfolio percentages to accomplish the following: 1.5% chance of loosing at…

A: Portflio Percentage

Q: Suppose that • Return      Ri:35%     RM:28% • Volatility  σi: 42%     σM: 30% • Find a portfolio…

A: According to Modigliani’s Risk adjustment performance measure, a portfolio can be levered or…

Q: You have a portfolio which consists of 75% of stock 1 (o^2 = 0.16) and 25% of stock 2 (o^2 = 0.09).…

A: Return on the stock is based on the risk free rate, market return and the risk associated with the…

Q: Portfolio Required Return Suppose you manage a $6 million fund that consists of four stocks with…

A: The Capital Asset Pricing Model (CAPM) refers to the model which tells us how the financial markets…

Q: 2. Consider the following expected returns, volatilities, and correlations: Expected Standard Stock…

A: b. Portfolio Volatility with Pital and Mital (assuming information available)Given:Long position in…

Q: A second version of the Markowitz portfolio model maximizes expected return subject to a constraint…

A: Step :1

Q: Consider the following information: Rate of Return if State Occurs State of Probability of State of…

A: The following data is given:To find: Expected return, variance and standard deviation of the…

Q: Suppose a portfolio is given as follows: Securities Weight BPW CJW AJT O 6.0% O 5.0% 0.3 O 5.1% 0.4…

A: Expected return of the portfolio is calculated using following equation Expected return of portfolio…