The Investment proportion of the portfolio is to be determined when the required expected return is 14%. The standard deviation in this question is to be compared with the optimized portfolio of the previous problem. Introduction: The portfolio risk is defined as the combination of assets which carries its own risk with each investment. The standard deviation is used to determine that in which manner the values from a data set vary from its mean value. This is calculated by the square root of the variance. s t a n d a r d d e v i a t i o n = v a r i a n c e The expected return is defined as the return which is obtained on the risky asset that is expected in future.

Question

Want to see the full answer?

Answer 1

Question

Chapter 7, Problem 10PS

Summary Introduction

To calculate: The Investment proportion of the portfolio is to be determined when the required expected return is 14%. The standard deviation in this question is to be compared with the optimized portfolio of the previous problem.

Introduction: The portfolio risk is defined as the combination of assets which carries its own risk with each investment.

The standard deviation is used to determine that in which manner the values from a data set vary from its mean value. This is calculated by the square root of the variance.

standard deviation=variance

The expected return is defined as the return which is obtained on the risky asset that is expected in future.

Expert Solution & Answer

Want to see the full answer?

Check out a sample textbook solution

See solution

Students have asked these similar questions

Calculate dividends qn

Mr dev.

Which of the following is not true about goodwill?* Goodwill needs to be evaluated for impairment yearly Goodwill is treated as a tangible asset in accounting Goodwill is a result of purchasing a company for a price higher than the fair market value of the target company's net assets Goodwill can be comprised of things such as good reputation, loyal client base, and brand recognition