You manage a risky portfolio with an expected rate of return of 10% and a standard deviation of 33%. The T-bill rate is 2%. Your client chooses to invest 75% of a portfolio in your fund and 25% in an essentially risk-free money market fund. What are the expected return and standard deviation of the rate of return on his portfolio? Note: Round your answers to 2 decimal places. Expected return Standard deviation % %

Q: You manage a risky portfolio with expected rate of return of 20% and standard deviation of 36%. The…

A: Expected return on portfolio, E(Rp) = 20%Risk aversion, A = 1.6Risk free rate = 5% Standard…

Q: Assume that your client would prefer to invest her entire wealth into a portfolio with an annual…

A: To determine the optimal allocation, y, we need to use the Capital Market Line (CML) equation, which…

Q: An investor owns a portfolio consisting of two mutual funds, A and B, with 35% invested in A. The…

A: Calculating the expected value of a portfolio return involves understanding the weights of…

Q: You can invest in a portfolio of two assets: the riskfree asset with rate of return 6%, and a risky…

A: The question is based on the basis of calculation for risk aversion in the Indian system. The risk…

Q: Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard…

A: The investment proportions of the individual assets are given above on the basis of 50% of…

Q: The NXP fund has an expected return of 3.60%, with volatility 24.00%. The risk free rate is 1.70%,…

A: The reward-to-volatility ratio, also known as the Treynor ratio, gauges how much excess return a…

Q: Required: a. What proportion, y, of the total investment should be invested in your fund? b. What…

A: The expected return is a useful tool for estimating the potential average profit or loss on an…

Q: 1. Consider the table below which lists a set of portfolios with each of their expected return E(R)…

A: To create the efficient frontier, we plot the expected return (E(R)) on the y-axis and the standard…

Q: You manage a risky portfolio with an expected return of 12% and a standard deviation of 24%.…

A: The objective of the question is to understand the concept of Capital Allocation Line (CAL) and…

Q: Consider the following information and then calculate the required rate of return for the Global…

A: Market Rate of return = rm = 10%Risk Free rate = rf = 7.25%

Q: You plan to put 50% of your wealth into each assets. What would the expected return be for the…

A: Expected return on a portfolio is the rate of return that is required to generate from the…

Q: If your portfolio includes 35 percent of X, 40 percent of Y and 25 percent of Z, answer the…

A: Hi, there, Thanks for posting the question. As per our Q&A honour code, we must answer the first…

Q: You compute the optimal risky portfolio to have the expected return of 12% and standard deviation of…

A: Here, Expected Return of Portfolio  is 12% Standard Deviation is 20% Risk-free rate is 4% Risk…

Q: After learning the course, you divide your portfolio into three equal parts (i.e., equal market…

A: Here,Beta of Market Index is always 1Since Treasury bills are risk free, Beta is 0Beta of Mutual…

Q: You manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 36%.…

A: Given, Expected return = 17% Standard deviation = 36% T-bill rate = 6%

Q: The risk-free rate is 4%, and the required return on the market is 12%. b. A portfolio invests 40%…

A: Portfolio return is the weighted average return of individual assets   Portfolio return = (WeightA *…

Q: After learning the course, you divide your portfolio into three equal parts, with one part in…

A: The beta of overall portfolio is calculated as weighted proportion of beta into each respective…

Q: An investor invests 30% of his funds in risk free asset and the remaining 70% of funds in an index…

A: The objective of the question is to calculate the expected return and risk of a portfolio using the…

Q: You manage a risky portfolio with an expected rate of return of 13% and a standard deviation of 34%.…

A: The Sharpe ratio refers to the measure of the risk-adjusted return to ascertain the compensation…

Q: The Manhawkin Fund has an expected return of 17% and a standard deviation return of 33%. The risk…

A: Sharpe ratio is one of the financial metric which is used to analyze the performance of various…

Q: You invest 80% of your portfolio in a risky portfolio that has an expected rate of return of 15% and…

A: Given: Weight of risky portfolio = 80% Expected return = 15% Standard deviation = 21% T bill rate =…

Q: "You manage a risky portfolio with an expected rate of return of 11% and a standard deviation of…

A: Return on risky portfolio = 11%Standard deviation (SD) = 37%T-bill return = 4%Expected return on…

Q: A client wants to invest 44% of her money in a portfolio of risky assets and the rest in Treasury…

A: Standard deviation of portfolio comprising of 2 securities is calculated as follows:-SDp =whereSDp…

Q: You will have a portfolio that is only comprised of two assets. You plan to allocate 47.1% into…

A: Expected return on a portfolio refers to the anticipated gain or loss that an investor can expect…

Q: You manage a risky portfolio with an expected rate of return of 10% and a standard deviation of 29%.…

A: Risky portfolio rate of return (Re) = 10%Risky portfolio standard deviation (Se) = 29%T bill rate…

Q: You estimate that the expected return of your portfolio is 30%. The standard deviation of the return…

A: z value = (-20 - 30)/25 = -2 so the probability = (100% - 95.44%)/2 = 2.28%

Q: Suppose that a fund that tracks the S&P has mean E(RM) = 16% and standard deviation OM = 10%, and…

A: Standard Deviation is mesaure the risk which is involved in earning the return from the stock. Lower…

Q: Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard…

A: Investment in stock refers to an amount that is being invested by investors for the purpose of…

Q: Consider the following information about a risky portfolio that you manage and a risk-free asset:…

A: Expected return on overall portfolio= 7%Expected return on risky portfolio= 11%Risk-free rate=…

Q: Assume that you manage a risky portfolio with an expected rate of return of 20% and a standard…

A: Standard deviation is the quantitative measure of risk of stock return and is measured as the…

Q: After learning the course, you divide your portfolio into three equal parts (i.e., equal market…

A: Here, Beta of Market Index is always 1 Beta of Treasury Bills is always 0 Beta of Mutual Fund is 0.8…

Q: You invest in a portfolio of 5 stocks with an equal investment in each one. The betas of the 5…

A: This consists of two parts: In the first part we need to calculate the beta of the portfolio. In the…

Q: Assume you have an optimal risky portfolio with an expected return of 17% and a standard deviation…

A: Given: Expected return = 17% Standard deviation = 27% Risk free rate = 5% Risk aversion = 2

Q: You manage a risky portfolio with an expected rate of return of 14% and a standard deviation of 29%.…

A: The Sharpe ratio refers to the measure of the risk-adjusted return to ascertain the compensation…

Q: Consider a portfolio that offers an expected rate of return of 13% and a standard deviation of 20%.…

A: Given, Expected Rate of Return = 13% Standard Deviation = 20% T-Bill rate of return = 4% We will use…

Q: Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required…

A: Given: Particulars Old value New value Investment value $10,000,000 $11,500,000 Beta 1.05…

Q: Assume that you manage a risky portfolio with an expected rate of return of 17% and a standard…

A: Given data:> Risky portfolio rate of return (Re) = 17%>Risky portfolio standard deviation (Se)…

Q: You invest $96 in a risky asset and the T-bill. The risky asset has an expected rate of return of…

A: Portfolio is the combination of stocks in different proportions and this done to reduce risk and…