Question: Asset Class E ( R ) CS FI PR S 8.7 % 14.2 % 1.0 FI 5.6 7.9 0.3 1.0 PR 7.1 11.5 0.5 0.2
| Asset Class | E(R) | CS | FI | PR | |||
| S | 8.7 | % | 14.2 | % | 1.0 | ||
| FI | 5.6 | 7.9 | 0.3 | 1.0 | |||
| PR | 7.1 | 11.5 | 0.5 | 0.2 | 1.0 | ||
| RFR | 3.1 | ||||||
You have already determined that the expected return and standard deviation for the Current Allocation are: E(Rcurrent) = 7.46 percent and current = 9.936 percent.
- Calculate the expected return for the Proposed Allocation. Round your answer to two decimal places.
%
- Calculate the standard deviation for the Proposed Allocation. Do not round intermediate calculations. Round your answer to two decimal places.
%
- For both the Current and Proposed Allocations, calculate the expected risk premium per unit of risk (that is, [E(Rp) - RFR]/). Do not round intermediate calculations. Round your answers to three decimal places.
Current Allocation:
Proposed Allocation:
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