# Question: Given 100 000 to invest what is the expected risk premium in

Given $100,000 to invest, what is the expected risk premium in dollars of investing in equities versus risk-free T-bills (U.S. Treasury bills) based on the followingtable?

## Answer to relevant Questions

Consider a portfolio that offers an expected rate of return of 12% and a standard deviation of 18%. T-bills offer a risk-free 7% rate of return. What is the maximum level of risk aversion for which the risky portfolio is ...Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. What is the expected value and standard deviation of the rate of return on his portfolio?You manage a risky portfolio with ...Investment Management Inc. (IMI) uses the capital market line to make asset allocation recommendations.IMI derives the following forecasts:• Expected return on the market portfolio: 12%.• Standard deviation on the market ...Based on the scenarios below, what is the expected return for a portfolio with the following return profile?Use the following scenario analysis for Stocks X and Y to answer CFA Problems 3 through 6 (round to the ...An analyst estimates that a stock has the following probabilities of return depending on the state of the economy:What is the expected return of thestock?Post your question