Question: PLEASE SHOW THE EXCEL FILE WITH THE FORMULAS FOR BOTH THE QUESTIONS: You manage a risky stock fund with an expected rate of return equal

PLEASE SHOW THE EXCEL FILE WITH THE FORMULAS FOR BOTH THE QUESTIONS:

You manage a risky stock fund with an expected rate of return equal to 18% and a standard deviation equal to 28%. Currently the risk free investment has an annual rate of 8%.Assuming you found that for your client the optimal allocation to the risky fund should be 70%. What is the expected return and standard deviation of her total portfolio if she places the rest of her money in the safe fund? (Do not round intermediate calculations. Round "Standard deviation" to 3 decimal places.)

Total Expected Return= ?

Total Standard Deviation= ?

You manage a risky stock fund with an expected rate of return equal to 18% and a standard deviation equal to 28%. The T-bill annual rate is 8%. Your client chooses to invest 70% of her portfolio in your risky stock fund and 30% in T-bills. If we assume that you put 100% of your portfolio into the risky stock fund you manage, what is the reward-to-volatility (Sharpe) (ratio (S) of your total portfolio? (Do not round intermediate calculations. Round your answers to 4 decimal places.)

Your S (total) ratio= ?

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