Question: Edit question As an investor advisor your client has approached you with k1000000 to invest. You are considering creating a portifolio of two funds (X

Edit question

As an investor advisor your client has approached you with k1000000 to invest. You are considering creating a portifolio of two funds (X and Y). Th average return of the the funds are 15% and 11% respectively. The covariance (COV) matrix of the two funds below is given below. You are targeting a portfolio return of 12%.

covariance	A	B
A	0.04	0.025
B	0.025	0.032

(A). How much in kwacha will you invest in each of the funds?[10marks].(B) Compute the standard deviation of your portfolio.[10marks]Required:

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!

As an investor advisor your client has approached you with k1000000 to invest. You are considering creating a portifolio of two funds (X and Y). Th average return of the the funds are 15% and 11%...

Hey i need you help with my Portfolio final report. i get some of them and want you to finish it, i will upload the professor sample report, and half of my work, plus the week 4 and week 5 report...

I would like to know if someone can assist with inputting the formulas into the Excel spreadsheets..... Answers are provided, however, the formulas were omitted. Week 9 Chapter 21: Problems 3(a-e),...

Looking for assistance in Finance HW..... I ONLY Need the FORMULASin the function ribbon (for the answers that I already have, which are attached below) Please advise if you can assist and provide...

During the depression of the 1930s, Ben Jenkins, Sr., a wealthy, expansion-oriented lumberman whose family had been in the lumber business in the southeaster United States for several generations,...

Consider the two (excess return) index-model regression results for stocks A and B. The risk-free rate over the period was 6%, and the markets average return was 14%. Performance is measured using an...

You are a financial advisor, and you have several investment appointments today with different clients. Some of the appointments involve clients looking to invest for different goals, some have...

THIS QUESTION IS DUE IN EXACTLY 1 HOUR AND 45 MINUTES. I WILL PAY EXTRA 10 DOLLARS IN TIP IF SOMEONE TYPES THE EXACT ANSWER REQUESTED. PLEASE RESPOND TO THE EACH AND EVERY QUESTION IN A TOTAL OF 3-4...

Explore the differences in the japanese and american investment decision-making processes and the conflicts that arise from there. TOKYO DISNEYLAND AND THE DISNEYSEA PARK: CORPORATE GOVERNANCE AND...

Question 1 Company XYZs current return on equity (ROE) is 14%. It pays out one-half of earnings as cash dividends (payout ratio = 0.5). Current book value per share is R50. Book value per share will...

In Chapter 5 you learned that, under certain conditions, a good could be a Giffen good: An increase in the price of the good could lead to an increase, rather than a decrease, in the quantity...

A heavy-wall tube of Monel, 2.5-cm ID and 5-cm OD, is covered with a 2.5-cm layer of glass wool. The inside tube temperature is 300C, and the temperature at the outside of the insulation is 40C. How...

In the bond market, firms raise debt directly from _ _ _ _ _ _ _ _ _ _ ? Question 2 5 options: Investors Consumer Banks Government agencies Retail Banks

The first scenario will be a Verbal Judo scenario in which your scenario follows the standard Verbal Judo interaction: You need to ask somebody to modify their behavior either to do something or to...

2. You have to evaluate an employee who has been late frequently. A. We have guidelines around here, you know. B. I need you to try harder to be on time. C. I want you to be here at 8:55 each morning.

What kinds of slang or jargon do you regularly use? How did you become familiar with these terms? And how would you go about explaining these terms to someone who is unfamiliar with them?

B What kinds of technical words and phrases have become part of your everyday language? Have you ever Googled anyone? Would you think it odd if you had to explain the meaning of the verb Google to...