UBS made the weighting recommendations to a client regarding estimations of the following 3 assets at...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
UBS made the weighting recommendations to a client regarding estimations of the following 3 assets at the end of Year 2021: Asset Stock HYA Stock HLT Treasury Bills Asset Stock HYA Stock HLT Expected Return Treasury Bills 20% 15% 0.75% At the end of September in Year 2022, the economic landscape changed and the new estimations of the 3 assets become the followings: Expected Return 10% 5% Standard Deviation 3.25% 30% 20% 0% Standard Deviation 40% 30% Weights 50% 30% 20% 0% Weights ? ? ? It is estimated that there is no co-movement between stock HYA and stock HLT. The client prefers to maintain the original proportion of both stocks in the risky portfolio at the end of September in Year 2022 as they are the gifts from his parents. UBS made the weighting recommendations to a client regarding estimations of the following 3 assets at the end of Year 2021: Asset Stock HYA Stock HLT Treasury Bills Asset Stock HYA Stock HLT Expected Return Treasury Bills 20% 15% 0.75% At the end of September in Year 2022, the economic landscape changed and the new estimations of the 3 assets become the followings: Expected Return 10% 5% Standard Deviation 3.25% 30% 20% 0% Standard Deviation 40% 30% Weights 50% 30% 20% 0% Weights ? ? ? It is estimated that there is no co-movement between stock HYA and stock HLT. The client prefers to maintain the original proportion of both stocks in the risky portfolio at the end of September in Year 2022 as they are the gifts from his parents.
Expert Answer:
Answer rating: 100% (QA)
a UBS should recommend the following weights for the clients overall portfolio at the end of Septemb... View the full answer
Related Book For
Contemporary Financial Management
ISBN: 978-1285198842
13th edition
Authors: R. Charles Moyer, James R. McGuigan, Ramesh P. Rao
Posted Date:
Students also viewed these accounting questions
-
The following income statement and balance sheet for The Athletic Attic are provided. Required: Assuming that all sales were on account, calculate the following risk ratios for 2012: 1. Receivables...
-
The following is a condensed balance sheet for the Albinitree Corporation. Albinitree Corporation Balance Sheet as at December 31, 2010 Assets($000) Cash...
-
The December 31, 2013 balance sheet for the Greystone Partnership appears below: Additional information: 1. The partners agreed that each will earn 6 percent interest on his or her beginning-of-year...
-
By a work sampling study: Observed Data The machine is being used Proportion of manual labour (machine is running and/or (servicing time) T-% machine is random serviced) Allowance Time Proportion of...
-
The following are solution concentrations. Indicate whether each solution is acidic, basic, or neutral. a. 2 10-11 M OH b. 2 10-9 M H3O+ c. 6 10-5 M OH d. 6 10-3 M H3O+
-
When can a business owner be earning a profit but not covering costs?
-
Blood flows at volume rate \(Q\) in a circular tube of radius \(R\). The blood cells concentrate and flow near the center of the tube, while the cell-free fluid (plasma) flows in the outer region....
-
The following financial data were reported by 3M Company for 2009 and 2010 (dollars in millions). Instructions (a) Calculate the current ratio and working capital for 3M for 2009 and 2010. (b)...
-
A 5.0 g bullet moving 325 m/s is shot into a 1.25 kg block, which slides for 1.35 seconds across the surface it is on before coming to rest. What is the average force of kinetic friction between the...
-
Barbara is single and owns a home in the city, which is her primary residence. She also owns a cottage at the beach, which she treats as a vacation home. In April 2019, she borrowed $50,000 on a home...
-
Clinton Corp. had the following pretax income (loss) over its first three years of operations: 2016 $ 1,200,000 2017 (900,000) 2018 1,500,000 For each year there were no deferred income taxes and the...
-
The midterm scores from an honors seminar in accounting are 25, 84, 82, 83, 90, 91, 99, 100, and 100. Find the mean, median, and mode. Is one measure preferable to another? Why or why not?
-
Draw the stem-and-leaf display of DPS of JNJ and Merck during the period 19882009 using Table 2.3, in which data on EPS, DPS, and PPS for JNJ, Merck, and S&P 500 during the period 19882009 are given....
-
In finance, we generally use a measure of dispersion such as the variance to measure the risk of a stocks returns. Explain why the variance may not, however, be the best measure of risk of a stocks...
-
(a) Briefly compare the arithmetic mean with the geometric mean. Cite some cases where the geometric mean would be preferred. (b) Use data given in Table 4.9 to calculate the arithmetic mean and the...
-
Suppose you are an efficiency expert who is concerned with the absentee rate for workers in a factory. You collect the following information: (a) Calculate the moan and standard deviation for days...
-
Suppose a country imports $100 million in goods and services and exports $125 million in goods and services, what is the value of the net exports?"
-
The May 2014 revenue and cost information for Houston Outfitters, Inc. follow: Sales Revenue (at standard).............. $ 540,000 Cost of Goods Sold (at standard) ..........341,000 Direct Materials...
-
The Fisher Apparel Company balance sheet for the year ended 2012 is as follows: a. What is Fisher's investment in current assets? b. Determine Fisher's working capital investment. c. Determine...
-
The balance sheet and income statement of Eastland Products, Inc., are as follows: Income Statement for Year Ended December 31, 2013 (in Millions of Dollars)...
-
Prepare a cash budget for Atlas Products, Inc., for the first quarter of 2014, based on the following information. The budgeting section of the corporate finance department of Atlas Products has...
-
Describe which characteristics of HR metrics and workforce analytics are likely to result in greater return on investment and organizational impact.
-
Why are information security and privacy important considerations in the design, development, and maintenance of an HRIS?
-
List and discuss the major information security and privacy threats to organizations.
Study smarter with the SolutionInn App