subject
Business, 23.11.2019 05:31 krisbarnett5353

An investor wants to determine the safest way to structure a portfolio from several investments. investment a produces an average annual return of 14% with a variance of 0.025. investment b produces an average rate of return of 9% with a variance of 0.015. investment c produces an average rate of return of 8% with a variance of 0.010. investments a and b have a covariance of 0.00028, and investments a and c have a covariance of -0.006. investments b and c have a covariance of 0.00125.
a. suppose the investor wants to achieve at least a 12% return. what is the least risky way of achieving this goal? round the answers for portfolio investments to one decimal place and portfolio variance to four decimal places. investment a % b % c % variance
b. suppose the investor regards risk minimization as being five times more important than maximizing return. what portfolio would be most appropriate for the investor? round the answers for portfolio investments to one decimal place and portfolio variance to four decimal places. investment a % b % c % variance

ansver
Answers: 3

Another question on Business

question
Business, 22.06.2019 13:30
After successfully completing your corporate finance class, you feel the next challenge ahead is to serve on the board of directors of schenkel enterprises. unfortunately, you will be the only person voting for you. the company has 375,000 shares outstanding, and the stock currently sells for $40, if there are four seats in the current election, how much will it cost you to buy a seat?
Answers: 2
question
Business, 22.06.2019 19:40
On april 1, santa fe, inc. paid griffith publishing company $2,448 for 36-month subscriptions to several different magazines. santa fe debited the prepayment to a prepaid subscriptions account, and the subscriptions started immediately. what amount should appear in the prepaid subscription account for santa fe, inc. after adjustments on december 31 of the first year assuming the company is using a calendar-year reporting period and no previous adjustment has been made?
Answers: 1
question
Business, 22.06.2019 20:30
Afirm wants to hire a project manager (pm) at a salary of $100,000. 30% of pms have high ability, and 70% of pms have low ability. high ability pms generate $120,000 in revenue and low ability pms generate $80,000 in revenue. in addition to differences in productivity, high and low ability pms have different outside offers. if a high ability pm is not hired by the firm, she can work for another company at a salary of $80,000. if the low ability pm is not hired by the firm, she can work for another company for $70,000. high ability pms are also able to get a project management professional (pmp) certification at a cost of $1,000. low ability pms are unable to get a pmp certification (they would fail the test). the firm is not able to observe a pm’s ability, but is able to observe and verify whether or not the pm has a pmp certificate.(a) draw the extensive form of the game.expert answer
Answers: 3
question
Business, 22.06.2019 22:10
Which of the following is usually not one of the top considerations in choosing a country for a facility location? a. availability of labor and labor productivityb. attitude of governmental unitsc. location of marketsd. zoning regulationse. exchange rates
Answers: 1
You know the right answer?
An investor wants to determine the safest way to structure a portfolio from several investments. inv...
Questions