A client has formed Portfolio A with weights of 20%, 30%, 20%, and 30% in Australia,...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
A client has formed "Portfolio A" with weights of 20%, 30%, 20%, and 30% in Australia, Austria, Belgium, and Canada, respectively. Using only the 4 country assets, find the portfolio that has the same expected return as "Portfolio A" but the lowest possible standard deviation. What is the standard deviation of that portfolio? A client has formed "Portfolio A" with weights of 20%, 30%, 20%, and 30% in Australia, Austria, Belgium, and Canada, respectively. Using only the 4 country assets, find the portfolio that has the same expected return as "Portfolio A" but the lowest possible standard deviation. What is the standard deviation of that portfolio?
Expert Answer:
Answer rating: 100% (QA)
To find the portfolio with the same expected return as Portfolio A but the lowest possible standard deviation we must use the Global Minimum Variance ... View the full answer
Related Book For
Income Tax Fundamentals 2013
ISBN: 9781285586618
31st Edition
Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill
Posted Date:
Students also viewed these accounting questions
-
Portfolio Expected Return You own a portfolio that has $3,140 invested in Stock A and $4,300 invested in Stock B. If the expected returns on these stocks are 9 percent and 14 percent, respectively,...
-
Expected return and standard of a risky portfolio are 11% and 21% respectively. Risk-free rate is 5%. Mr. Yen constructed a complete portfolio with these two assets, which maximises his utility. If...
-
The expected return and standard deviation of the market portfolio are 8% and 12%, respectively. The expected return of security A is 6%. The standard deviation of security B is 18%, and its specific...
-
In April 2016, Vanessa bought 100 shares in Entagon plc at a cost of 5 per share. The company went into liquidation and Vanessa received a first distribution of 40p per share in July 2020. The shares...
-
Calculating the Cash Budget here are some important figures from the budget of Nashville Nougats, Inc., for the second quarter of 2006. The company predicts that 5 percent of its credit sales will...
-
In August 2014, plaintiff, who sold his photographic work online, sued defendants for copyright infringement. Specifically, the owner of the online photos alleged that the defendants had obtained...
-
What internal and external forces push for change in organizations?
-
Eyewitness News is shown on channel 5 Monday through Friday evenings from 5:00 P.M to 6:00 P.M. During the hour-long broadcast, 18 minutes are allocated to commercials. The remaining 42 minutes of...
-
In the diagram below, PQ is parallel to MN. If PQ is 6 more than OQ, ON = 12, and MN = 21, find the length of OQ. Figures are not necessarily drawn to scale. State your answer in simplest radical...
-
Which statement concerning TQM in services is false a Service quality often depends upon the courtesy of the sales person b Service quality often depends upon how problems are handled c Service...
-
El acuerdo escrito entre una corporacin y sus tenedores debonos podra contener una prohibicin de pagar dividendos en excesode las ganancias actuales. Esta prohibicin es un ejemplo deuna(s): 1 answer
-
Speaking candidly, what mistake(s) were made in the submission that warranted this Academic Integrity Violation?
-
Some experts on the film industry state that the industry historically returns 12 per cent a year. The table includes the U.S. return on investment (ROI) (defined as the difference between total US...
-
Following were the account balances of Born Company at December 31, 2015: Cash on hand Cash current and savings accounts P187,500 3,375,00 0 2,400,00 0 Cash set aside for expansion (expected for...
-
How would you assign the following string to a variable named myString? Programming is fun
-
Suppose that a technological advance in Japan lowers the world price of televisions. a. Assume Switzerland is an importer of televisions and there are no trade restrictions. How does the...
-
On January 1, 2018, A Company, B Company, and C Company established D Entity, and agreed to share joint control over the joint arrangement. Each of the aforementioned participants has classified the...
-
A summary of changes in Pen Corporation's Investment in Sam account from January 1, 2011, to December 31, 2013, follows (in thousands): ADDITIONAL INFORMATION 1. Pen acquired its 80 percent interest...
-
Van makes an investment in a partnership in 2012. Van's capital contributions to the partnership consisted of $30,000 cash and a building with an adjusted basis of$70,000, subject to a nonrecourse...
-
For each of the following situations, indicate whether the taxpayer(s) is (are) required to file a tax return for 2012. Explain your answer. a. Helen is a single taxpayer with interest income in 2012...
-
Janie graduates from high school in 2012 and enrolls in college in the fall. Her parents pay $4,000 for her tuition and fees. a. Assuming Janie's parents have AGI of $170,000, what is the American...
-
Comparative Advantage in the Twenty-First Century. With reference to the theory of comparative advantage, explain how MNEs outsource some services to emerging market economies.
-
Outsourcing and MNEs. How can global outsourcing enable a firm to become a multinational enterprise?
-
Ganados Globalization. After reading the chapters description of Ganados globalization process, how would you explain the distinctions between international, multinational, and global companies?
Study smarter with the SolutionInn App