Question: Problems 16 - 18 are based on the following provided in the following table (25 points): Expected Rate of Return Assets Portfolio Allocation Expected Standard
Problems 16 - 18 are based on the following provided in the following table (25 points): Expected Rate of Return Assets Portfolio Allocation Expected Standard Deviation Risk-Free Assets T-Bills * 10.0 2.0% 1 0 % Risky Assets Bonds Stocks 60.00 105.5% 0 30. 0 24.0% D12% 42% 16. Assuming the correlation between stocks and bonds is 0.25, compute the Standard Deviation of the combined risky portfolio. 40.6 x 3.5 3 + ( 6 X 14 3 + 2 (0. 6 5) 10.89 207,36 + > 17. S of Compute the Sharpe Ratio of the combined risky portfolio. 18. If you had $100,000 to invest in this portfolio based on the allocation above - including cash, compute the expected S profit and expected WAHPR. Problems 16 - 18 are based on the following provided in the following table (25 points): Expected Rate of Return Assets Portfolio Allocation Expected Standard Deviation Risk-Free Assets T-Bills * 10.0 2.0% 1 0 % Risky Assets Bonds Stocks 60.00 105.5% 0 30. 0 24.0% D12% 42% 16. Assuming the correlation between stocks and bonds is 0.25, compute the Standard Deviation of the combined risky portfolio. 40.6 x 3.5 3 + ( 6 X 14 3 + 2 (0. 6 5) 10.89 207,36 + > 17. S of Compute the Sharpe Ratio of the combined risky portfolio. 18. If you had $100,000 to invest in this portfolio based on the allocation above - including cash, compute the expected S profit and expected WAHPR
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