6) You form a complete portfolio by investing $6,000 in S&P 500 and $4,000 in the...
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6) You form a complete portfolio by investing $6,000 in S&P 500 and $4,000 in the risk- free security. Given the information about S&P 500 and the risk-free security on the table, figure out the following. i) Figure out the standard deviation of the complete portfolio. (15points) ii) Figure out the slope of the Capital Allocation Line (CAL). (25points) 6) A complete portfolio is composed of the risk-free security and a risky portfolio, Q, constructed with two risky securities, X and Y. Given the risk-free rate of 4%. X has an expected return of 10%, and Y has an expected return of 20%. i) Given the expected return of 14% for the risky portfolio Q, what are the weights for X and Y, respectively? (15points) ii) You would like to form a complete portfolio with the expected return of 19%. What are the wights for the risk-free security and the risky portfolio Q, respectively? (15points) 6) You form a complete portfolio by investing $6,000 in S&P 500 and $4,000 in the risk- free security. Given the information about S&P 500 and the risk-free security on the table, figure out the following. i) Figure out the standard deviation of the complete portfolio. (15points) ii) Figure out the slope of the Capital Allocation Line (CAL). (25points) 6) A complete portfolio is composed of the risk-free security and a risky portfolio, Q, constructed with two risky securities, X and Y. Given the risk-free rate of 4%. X has an expected return of 10%, and Y has an expected return of 20%. i) Given the expected return of 14% for the risky portfolio Q, what are the weights for X and Y, respectively? (15points) ii) You would like to form a complete portfolio with the expected return of 19%. What are the wights for the risk-free security and the risky portfolio Q, respectively? (15points)
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i To figure out the standard deviation of the complete portfolio Given Investment in SP 500 6000 Investment in riskfree security 4000 Standard deviati... View the full answer
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Project Management A Systems Approach to Planning Scheduling and Controlling
ISBN: 978-0470278703
10th Edition
Authors: Harold Kerzner
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