Question: please link an excel speeadsheet Consider a risky fund with 18% standard deviation and 15% expected return and a risk free rate assets with 5%

please link an excel speeadsheet

Consider a risky fund with 18% standard deviation and 15% expected return and a risk free rate assets with 5% rate of return.

a. Write the Capital Allocation Line equation.

b. Using the fund and the risk free asset, design two portfolios; first one with 11% standard deviation, second with 22% standard deviation (calculate the fund and the risk free assets weights) and report the portfolio expected return.

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!

Our team is hired by Apple to help assess whether or not to continue to manufacture and sell an older model of the iPhone. Apple explains that this model continues to sell well in foreign markets but...

Portfolio analysis 2. Consider a risky fund with 18% standard deviation and 15% expected return and a risk free rate assets with 5% rate of return. a. Write the Capital Allocation Line equation. b....

6. Consider a risky fund with 18% standard deviation and 15% expected return. Also, the risk free rate is 5%. a Write the Capital Allocation Line equation. b. Using the fund and the risk free asset,...

Consider a risky fund with 18% standard deviation and 15% expected return. Also, the risk free rate is 5%. a. Write the Capital Allocation Line equation. b. Using the fund and the risk free asset,...

Consider a risky fund with 2 0 % standard deviation and 1 6 % expected return. Also, the risk free rate is 4 % . a . Write the Capital Allocation Line equation. b . Using the fund and the risk free...

6. Consider a risky fund with 20% standard deviation and 16% expected return. Also, the risk free rate is 4%. a. Write the Capital Allocation Line equation. b. Using the fund and the risk free asset,...

5. Which of the following is a short-term collateralized loan? (a) Certificate of deposit. (b) Repurchase agreement. (c) Bankers acceptance. (d) Commercial paper. 10. A short-seller shorted 10 shares...

QUESTION 1 Le Place has sales of $439,000, depreciation of $32,000, and net working capital of $56,000. The firm has a tax rate of 34% and NOPAT is 6% of sales. The firm has no interest expense. What...

please do the matching. I will upvote!! 1. Assets that have been increasing in price are likely to continue increasing in price and assets that have been declining in price are likely to continue...

At the end of 2014, Croydon Corp. paid US $ 855 million for interest on the debt: to. a. How much more would this corporation have paid in taxes if it were financed only with its own capital? b. What...

Two years before going bankrupt, Homer sold his second house in Mount Royal to his son Bart for $100. The creditors are disappointed because this residence had a market value of two million and they...

2 What is most likely to cause demand-pull inflation? A an increase in saving B an increase in consumer spending C an increase in interest rates D an increase in taxes

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...

3. Explain the forces that influence how people handle conflict

2. Describe ways in which group size, social relationships, and communication networks affect group communication

1. List the characteristics and types of groups and explain how groups develop