# Question

Jackie borrowed $500 at the risk-free rate of 8 percent. She invested the borrowed money and her own money of $1,500 in a portfolio with a 15-percent rate of return and a 30-percent standard deviation. What is the expected return and standard deviation of her portfolio?

## Answer to relevant Questions

Today, you observe the market portfolio has an expected return of 13 percent, with a standard deviation of 7 percent. The risk-free rate is 2 percent. If only the risk-free rate increases, will the composition of the market ...Four risk factors, F1, F2, F3, and F4, have been identified to determine the required rate of return, as follows: ER I = a0 + bi1F1 + bi2F2 + bi3F3 + bi4F4, where a0 is the expected return on a security with zero systematic ...Suppose the spot exchange rate is C$1.4665 per €1, while the six-month forward rate is C$1.50 per euro. Suppose a firm has to pay a foreign supplier €100,000 in six months and decides to eliminate its foreign exchange ...An investor enters into a long position in 50,000 futures contracts that requires a $50,000 initial margin and has a maintenance margin that is 75 percent of this amount. The futures price associated with this contract is ...You are in the process of developing forecasts of short-term interest rates. In order to determine a bond trading strategy, you want to determine the market’s short-term (one-year) interest forecasts for different future ...Post your question

0