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 01:30
Standardization is associated with which of the following management orientations? a) ethnocentric orientation b) polycentric orientation c) regiocentric orientation d) geocentric orientation
Answers: 1
question
Business, 22.06.2019 05:30
Identify the three components of a family's culture and provide one example from your own experience
Answers: 2
question
Business, 22.06.2019 11:00
Zoe would like to be able to save for night courses at the local college. which of these would be a good way for zoe to make more money available for savings without dramatically changing her budget? economĂ­a
Answers: 2
question
Business, 22.06.2019 11:40
In early january, burger mania acquired 100% of the common stock of the crispy taco restaurant chain. the purchase price allocation included the following items: $4 million, patent; $3 million, trademark considered to have an indefinite useful life; and $5 million, goodwill. burger mania's policy is to amortize intangible assets with finite useful lives using the straight-line method, no residual value, and a five-year service life. what is the total amount of amortization expense that would appear in burger mania's income statement for the first year ended december 31 related to these items?
Answers: 2
You know the right answer?
An investor wants to determine the safest way to structure a portfolio from several investments. inv...
Questions
question
Mathematics, 23.05.2020 02:58