Business, 10.06.2020 17:57 erikloza12pdidtx
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a rate of 8%. The probability distribution of the risky funds is as follows: The correlation between these two funds' returns is 10 (i. e., 10%).
a. Tabulate and draw the investment opportunity set of the two risky funds. Use investment proportions for the stock fund of zero to 100% in increments of 20%.
b. What are the investment proportions in the minimum variance portfolio of the two risky funds and what is the expected value and standard deviation of its rate of return
c. Draw a tangent line from the risk-free rate to the opportunity set. What does your graph show for the expected return and standard deviation of the optimal portfolio?
d. Solve numerically for the proportions of each asset and for the expected return and standard deviation of the optimal risky portfolio
e. What is the Sharpe ratio of the best feasible capital allocation line (CAL)?
Answers: 1
Business, 22.06.2019 00:00
Which of the following is a disadvantage to choosing a sole proprietorship business structure? question 9 options: the owner has personal responsibility for the company's liabilities. the owner has to share the profits with partners. the owner is still liable for personal debts. the owner has to report to shareholders.
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Business, 22.06.2019 12:40
Evan company reports net income of $232,000 each year and declares an annual cash dividend of $100,000. the company holds net assets of $2,130,000 on january 1, 2017. on that date, shalina purchases 40 percent of evan's outstanding common stock for $1,066,000, which gives it the ability to significantly influence evan. at the purchase date, the excess of shalina’s cost over its proportionate share of evan’s book value was assigned to goodwill. on december 31, 2019, what is the investment in evan company balance (equity method) in shalina’s financial records?
Answers: 2
Business, 22.06.2019 15:30
For a firm that uses the weighted average method of process costing, which of the following must be true? (a) physical units can be greater than or less than equivalent units. (b) physical units must be equal to equivalent units. (c) equivalent units must be greater than or equal to physical units. (d) physical units must be greater than or equal to equivalent units.
Answers: 1
Business, 22.06.2019 20:20
Which statement is not true about a peptide bond? which statement is not true about a peptide bond? the peptide bond has partial double-bond character. the carbonyl oxygen and the amide hydrogen are most often in a trans configuration with respect to one another. rotation is restricted about the peptide bond. the peptide bond is longer than the typical carbon-nitrogen bond.
Answers: 2
A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a...
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