Question: A margin user has a proportion 1.5 invested in the risky portfolio that has .4 in A with an expected return of 14%, .6 in

A margin user has a proportion 1.5 invested in the risky portfolio that has .4 in A with an expected return of 14%, .6 in B with an expected return of 18%. If the riskfree rate is 5%, her expected return is

Show the formula (0.1 point)
Show Steps and calculation (0.4 point)
Present the answer (0.1 point)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer

Step: 1 Unlock blur-text-image

Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock

Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!

show all steps please! A margin user has a proportion 1.5 invested in the risky portfolio that has .4 in A with an expected return of 14%,.6 in B with an expected return of 18%. If the riskfree rate...

A margin user has a proportion 1.8 invested in the risky portfolio that has 3 in A with an expected return of 14%, .7 in B with an expected return of 18%. If the riskfree rate is 5%, her expected...

12,13 please D Question 12 0.6 pts Amargin user has a proportion 1.5 invested in the ridy portfolio that has 4 in A with an expected return of 14% 6 in B with an expected return of 18%. If the...

16. (0.3 point ) A margin user has a proportion 1.3 invested in the risky portfolfo that has . 4 in A with an expected return of 144,.6inB with an expected return of 184 . If the riskiree rate is 56...

A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long - term government Required information [ The following information applies to the questions...

Question 10 1.6 pts Conside you decide to invest 40% of your money in a risky portfolio P (with the expected return of and standard deviation of 20%) and invest 60% of your money into a Treasury bill...

A portfolio is composed of two stocks, A and B. Stock A has a standard deviation of return of 5% while stock B has a standard deviation of return of 15%. The correlation coefficient between the...

1. (20 points) Assume you have a risky portfolio with an 20% expected return and a 30% standard deviation. The risk free rate is 4%. Now you decide to invest in your risky portfolio a proportion (y)...

Assume you have a risky portfolio with an 17% expected return and a 36% standard deviation. The risk free rate is 4.5%. Now you decide to invest in your risky portfolio a proportion (y) of his total...

Need help all my answer are wrong [YOU SHOULD USE EXCEL TO CHECK YOUR CALCULATIONS] A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a longterm...

In 2007, Mardi Tan had the idea to start a free professional meeting site for Asian and Australian professionals who wished to make business connections. Her research showed that in 2000, there were...

A contemporary observer remarked that the world war of 1914-1918 was the greatest moral, spiritual and physical catastrophe in the entire history of the English people Do you agree or disagree with...

discounting? What are the mechanics of discounting? What are the cautions in using discounting under different scenarios? Provide examples to explain the points that you make

Add "Viggo Mortenslet cast = new Map ( ) ;en " to the cast as the key, with value "Aragorn".