Question: can someone please help me with these 2 questions ? 14. You manage an equity fund with an expected risk premium of 8% and a
can someone please help me with these 2 questions ?
14. You manage an equity fund with an expected risk premium of 8% and a standard deviation of 16%. The rate on Treasury bills is 3%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. What is the reward-to-volatility ratio for the equity fund? A. 0.5 B. 0.6 C. 0.7 D. 0.8 E. 0.9 Answer: 15. Assume you purchased 900 shares of XYZ common stock on margin at $90 per share from your broker. If the initial margin is 65%, the amount you borrowed from the broker A. $109,350 B. $81,000 C. $52,500 D. $28,350 E. $22,500
Step by Step Solution
There are 3 Steps involved in it
1 Expert Approved Answer
Step: 1 Unlock
Question Has Been Solved by an Expert!
Get step-by-step solutions from verified subject matter experts
Step: 2 Unlock
Step: 3 Unlock
