Carla is a creative portfolio manager at Sharpie Funds. She cooked three different funds: a bond...

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Carla is a creative portfolio manager at Sharpie Funds. She cooked three different funds: a bond fund (BONDX), a STOCK fund (STOKS) and a 60-40 portfolio called 6040X made of 60% STOKS and 40% BONDX. Looking at historic returns, Carla estimated that the E(r) for BONDX and STOCK are 5% and 10%, respectively. The volatility of 6040X is 14%. The risk free rate is 2%. Carla recommded to her client Mildred Wynthorp (degree of risk aversion A =4) to blend 6040X with T Bills. What should be the optimal share (in %) of 6040X and the volatility of the complete portfolio C? (round it to 2nd decimal case) Margareth Grey, a private wealth banker at Trustea Bank with 4 new clients. Mary Crown is a retired dentist who limited understanding of finance and has small tolerance toward risk. John Finn is a finance expert, understands risk d can endure a lot of volatility. Ann Bridges is a mid-career enginer with a quantitative mind, and has some tolerance toward risk. PJ Tom is in his late 70s; he lives out of fixed income and has zero tolerance toward risk - he cannot see his portfolio going down for more than one week. Based on these profiles, what are the likely degrees of investor risk aversion (A) for Tom, Mary, John and Ann? I Zoltan is a broker at Magma Capital. He has only one fund to sell to his clients: VOLOL. Zoltan tells them that VOLOL delivers an expected return and volatility of (17%, 15%). The risk free rate rf = 5%. His three largest clients are Roger, Diana, and Maria. Their degrees of risk aversion are 2, 4 and 6, respectively. Based on their degree of risk aversion, rank the clients in an INCREASING order of UTILITY from the least to the happiest client with VOLOL Carla is a creative portfolio manager at Sharpie Funds. She cooked three different funds: a bond fund (BONDX), a STOCK fund (STOKS) and a 60-40 portfolio called 6040X made of 60% STOKS and 40% BONDX. Looking at historic returns, Carla estimated that the E(r) for BONDX and STOCK are 5% and 10%, respectively. The volatility of 6040X is 14%. The risk free rate is 2%. Carla recommded to her client Mildred Wynthorp (degree of risk aversion A =4) to blend 6040X with T Bills. What should be the optimal share (in %) of 6040X and the volatility of the complete portfolio C? (round it to 2nd decimal case) Margareth Grey, a private wealth banker at Trustea Bank with 4 new clients. Mary Crown is a retired dentist who limited understanding of finance and has small tolerance toward risk. John Finn is a finance expert, understands risk d can endure a lot of volatility. Ann Bridges is a mid-career enginer with a quantitative mind, and has some tolerance toward risk. PJ Tom is in his late 70s; he lives out of fixed income and has zero tolerance toward risk - he cannot see his portfolio going down for more than one week. Based on these profiles, what are the likely degrees of investor risk aversion (A) for Tom, Mary, John and Ann? I Zoltan is a broker at Magma Capital. He has only one fund to sell to his clients: VOLOL. Zoltan tells them that VOLOL delivers an expected return and volatility of (17%, 15%). The risk free rate rf = 5%. His three largest clients are Roger, Diana, and Maria. Their degrees of risk aversion are 2, 4 and 6, respectively. Based on their degree of risk aversion, rank the clients in an INCREASING order of UTILITY from the least to the happiest client with VOLOL Carla is a creative portfolio manager at Sharpie Funds. She cooked three different funds: a bond fund (BONDX), a STOCK fund (STOKS) and a 60-40 portfolio called 6040X made of 60% STOKS and 40% BONDX. Looking at historic returns, Carla estimated that the E(r) for BONDX and STOCK are 5% and 10%, respectively. The volatility of 6040X is 14%. The risk free rate is 2%. Carla recommded to her client Mildred Wynthorp (degree of risk aversion A =4) to blend 6040X with T Bills. What should be the optimal share (in %) of 6040X and the volatility of the complete portfolio C? (round it to 2nd decimal case) Margareth Grey, a private wealth banker at Trustea Bank with 4 new clients. Mary Crown is a retired dentist who limited understanding of finance and has small tolerance toward risk. John Finn is a finance expert, understands risk d can endure a lot of volatility. Ann Bridges is a mid-career enginer with a quantitative mind, and has some tolerance toward risk. PJ Tom is in his late 70s; he lives out of fixed income and has zero tolerance toward risk - he cannot see his portfolio going down for more than one week. Based on these profiles, what are the likely degrees of investor risk aversion (A) for Tom, Mary, John and Ann? I Zoltan is a broker at Magma Capital. He has only one fund to sell to his clients: VOLOL. Zoltan tells them that VOLOL delivers an expected return and volatility of (17%, 15%). The risk free rate rf = 5%. His three largest clients are Roger, Diana, and Maria. Their degrees of risk aversion are 2, 4 and 6, respectively. Based on their degree of risk aversion, rank the clients in an INCREASING order of UTILITY from the least to the happiest client with VOLOL Carla is a creative portfolio manager at Sharpie Funds. She cooked three different funds: a bond fund (BONDX), a STOCK fund (STOKS) and a 60-40 portfolio called 6040X made of 60% STOKS and 40% BONDX. Looking at historic returns, Carla estimated that the E(r) for BONDX and STOCK are 5% and 10%, respectively. The volatility of 6040X is 14%. The risk free rate is 2%. Carla recommded to her client Mildred Wynthorp (degree of risk aversion A =4) to blend 6040X with T Bills. What should be the optimal share (in %) of 6040X and the volatility of the complete portfolio C? (round it to 2nd decimal case) Margareth Grey, a private wealth banker at Trustea Bank with 4 new clients. Mary Crown is a retired dentist who limited understanding of finance and has small tolerance toward risk. John Finn is a finance expert, understands risk d can endure a lot of volatility. Ann Bridges is a mid-career enginer with a quantitative mind, and has some tolerance toward risk. PJ Tom is in his late 70s; he lives out of fixed income and has zero tolerance toward risk - he cannot see his portfolio going down for more than one week. Based on these profiles, what are the likely degrees of investor risk aversion (A) for Tom, Mary, John and Ann? I Zoltan is a broker at Magma Capital. He has only one fund to sell to his clients: VOLOL. Zoltan tells them that VOLOL delivers an expected return and volatility of (17%, 15%). The risk free rate rf = 5%. His three largest clients are Roger, Diana, and Maria. Their degrees of risk aversion are 2, 4 and 6, respectively. Based on their degree of risk aversion, rank the clients in an INCREASING order of UTILITY from the least to the happiest client with VOLOL Carla is a creative portfolio manager at Sharpie Funds. She cooked three different funds: a bond fund (BONDX), a STOCK fund (STOKS) and a 60-40 portfolio called 6040X made of 60% STOKS and 40% BONDX. Looking at historic returns, Carla estimated that the E(r) for BONDX and STOCK are 5% and 10%, respectively. The volatility of 6040X is 14%. The risk free rate is 2%. Carla recommded to her client Mildred Wynthorp (degree of risk aversion A =4) to blend 6040X with T Bills. What should be the optimal share (in %) of 6040X and the volatility of the complete portfolio C? (round it to 2nd decimal case) Margareth Grey, a private wealth banker at Trustea Bank with 4 new clients. Mary Crown is a retired dentist who limited understanding of finance and has small tolerance toward risk. John Finn is a finance expert, understands risk d can endure a lot of volatility. Ann Bridges is a mid-career enginer with a quantitative mind, and has some tolerance toward risk. PJ Tom is in his late 70s; he lives out of fixed income and has zero tolerance toward risk - he cannot see his portfolio going down for more than one week. Based on these profiles, what are the likely degrees of investor risk aversion (A) for Tom, Mary, John and Ann? I Zoltan is a broker at Magma Capital. He has only one fund to sell to his clients: VOLOL. Zoltan tells them that VOLOL delivers an expected return and volatility of (17%, 15%). The risk free rate rf = 5%. His three largest clients are Roger, Diana, and Maria. Their degrees of risk aversion are 2, 4 and 6, respectively. Based on their degree of risk aversion, rank the clients in an INCREASING order of UTILITY from the least to the happiest client with VOLOL Carla is a creative portfolio manager at Sharpie Funds. She cooked three different funds: a bond fund (BONDX), a STOCK fund (STOKS) and a 60-40 portfolio called 6040X made of 60% STOKS and 40% BONDX. Looking at historic returns, Carla estimated that the E(r) for BONDX and STOCK are 5% and 10%, respectively. The volatility of 6040X is 14%. The risk free rate is 2%. Carla recommded to her client Mildred Wynthorp (degree of risk aversion A =4) to blend 6040X with T Bills. What should be the optimal share (in %) of 6040X and the volatility of the complete portfolio C? (round it to 2nd decimal case) Margareth Grey, a private wealth banker at Trustea Bank with 4 new clients. Mary Crown is a retired dentist who limited understanding of finance and has small tolerance toward risk. John Finn is a finance expert, understands risk d can endure a lot of volatility. Ann Bridges is a mid-career enginer with a quantitative mind, and has some tolerance toward risk. PJ Tom is in his late 70s; he lives out of fixed income and has zero tolerance toward risk - he cannot see his portfolio going down for more than one week. Based on these profiles, what are the likely degrees of investor risk aversion (A) for Tom, Mary, John and Ann? I Zoltan is a broker at Magma Capital. He has only one fund to sell to his clients: VOLOL. Zoltan tells them that VOLOL delivers an expected return and volatility of (17%, 15%). The risk free rate rf = 5%. His three largest clients are Roger, Diana, and Maria. Their degrees of risk aversion are 2, 4 and 6, respectively. Based on their degree of risk aversion, rank the clients in an INCREASING order of UTILITY from the least to the happiest client with VOLOL Carla is a creative portfolio manager at Sharpie Funds. She cooked three different funds: a bond fund (BONDX), a STOCK fund (STOKS) and a 60-40 portfolio called 6040X made of 60% STOKS and 40% BONDX. Looking at historic returns, Carla estimated that the E(r) for BONDX and STOCK are 5% and 10%, respectively. The volatility of 6040X is 14%. The risk free rate is 2%. Carla recommded to her client Mildred Wynthorp (degree of risk aversion A =4) to blend 6040X with T Bills. What should be the optimal share (in %) of 6040X and the volatility of the complete portfolio C? (round it to 2nd decimal case) Margareth Grey, a private wealth banker at Trustea Bank with 4 new clients. Mary Crown is a retired dentist who limited understanding of finance and has small tolerance toward risk. John Finn is a finance expert, understands risk d can endure a lot of volatility. Ann Bridges is a mid-career enginer with a quantitative mind, and has some tolerance toward risk. PJ Tom is in his late 70s; he lives out of fixed income and has zero tolerance toward risk - he cannot see his portfolio going down for more than one week. Based on these profiles, what are the likely degrees of investor risk aversion (A) for Tom, Mary, John and Ann? I Zoltan is a broker at Magma Capital. He has only one fund to sell to his clients: VOLOL. Zoltan tells them that VOLOL delivers an expected return and volatility of (17%, 15%). The risk free rate rf = 5%. His three largest clients are Roger, Diana, and Maria. Their degrees of risk aversion are 2, 4 and 6, respectively. Based on their degree of risk aversion, rank the clients in an INCREASING order of UTILITY from the least to the happiest client with VOLOL Carla is a creative portfolio manager at Sharpie Funds. She cooked three different funds: a bond fund (BONDX), a STOCK fund (STOKS) and a 60-40 portfolio called 6040X made of 60% STOKS and 40% BONDX. Looking at historic returns, Carla estimated that the E(r) for BONDX and STOCK are 5% and 10%, respectively. The volatility of 6040X is 14%. The risk free rate is 2%. Carla recommded to her client Mildred Wynthorp (degree of risk aversion A =4) to blend 6040X with T Bills. What should be the optimal share (in %) of 6040X and the volatility of the complete portfolio C? (round it to 2nd decimal case) Margareth Grey, a private wealth banker at Trustea Bank with 4 new clients. Mary Crown is a retired dentist who limited understanding of finance and has small tolerance toward risk. John Finn is a finance expert, understands risk d can endure a lot of volatility. Ann Bridges is a mid-career enginer with a quantitative mind, and has some tolerance toward risk. PJ Tom is in his late 70s; he lives out of fixed income and has zero tolerance toward risk - he cannot see his portfolio going down for more than one week. Based on these profiles, what are the likely degrees of investor risk aversion (A) for Tom, Mary, John and Ann? I Zoltan is a broker at Magma Capital. He has only one fund to sell to his clients: VOLOL. Zoltan tells them that VOLOL delivers an expected return and volatility of (17%, 15%). The risk free rate rf = 5%. His three largest clients are Roger, Diana, and Maria. Their degrees of risk aversion are 2, 4 and 6, respectively. Based on their degree of risk aversion, rank the clients in an INCREASING order of UTILITY from the least to the happiest client with VOLOL

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Answers and Explanation To determine the optimal share of 6040X and the volatility of the complete portfolio C we need to use the formula for MeanVari... View the full answer