Question: the expected return of security a is 10% with a standard deviation of 16% the expected return of security b is 7% with a standard

the expected return of security a is 10% with a standard deviation of 16% the expected return of security b is 7% with a standard deviation of 18% . securities a and b have a correlation of. 0.8. The market return is 14% with a stand deviation of 14% and a risk free rate of 2% what is the sharpe ratio of a portfolio if 43% of the porfolio is in security a and the remainder in security b?

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!

Joe Truman, a retired army officer, opened Truman?s Catering Service. As his accountant, analyze the transactions listed next and present them in proper form. 1. The analysis of the transactions by...

The expected return of Security A is 10% with a standard deviation of 20%. The expected return of Security B is 15% with a standard deviation of 30%. Securities A and B have a correlation of 0.3. The...

Hi, Please help me on these questions. Thank you Economic Information : The Quinns expect inflation to average 3% per year until they retire. They anticipate Jims salary will increase 10% annually,...

4. Required information Use the information in the table below to answer 4, 6 and 7. State of Nature Probability Return on A Return on B I 0.2 7 10 II 0.1 10 5 III 0.7 13 13 The correlation between A...

The expected return of Security A is 9% with a standard deviation of 14%. The expected return of Security B is 7% with a standard deviation of 18% Securities A and B have a correlation of 0.8. The...

The expected return of security A is 9% with a standard deviation of 14%, Expected return of security B is 7% with a standard deviation of 18%. Securities A and B have a correlation of 0.8. The...

Please show all work! See attachment there is 14 questions please show work and explain answer FIN 631 / Security Analysis & Portfolio Management Round numbers to four (4) significant decimal places;...

Please answering the following questions: Question # 1 : Your company's stock sells for $ 1 5 0 per share, its last dividend was $ 3 . 0 0 per share, and its growth rate is 4 % . What is the stock's...

The expected return of Security A is 9% with a standard deviation of 15%. The expected return of Security B is 8% with a standard deviation of 18%. Securities A and B have a correlation of 0.9. The...

(a) Mr Adani invests in two risky securities with the following details: Security 1: 1=0.16; 1=0.30; Security 2: 2=0.08; 2=0.25 Where 1 is the expected return of security 1 and 1 is the standard...

1). Sylvia is a risk-averse investor. The expected return of Portfolio A is 10% and the standard deviation is 14%. Portfolio B has s = 22.75%, and has end-of-year cash flows of either $74,000 or...

Prepare explanations to the following questions using at least 330 words in your post. Review the responses of one other classmate and offer your thoughts and opinions on their post. Your response...

Following are denitions or descriptions of terms relating to ratio analysis. (1) Involves studying the relationship between two or more nancial statement items (2) Indicates the amount that investors...

8. If the intTotalScore and intTests variables contain the numbers 0 and 10, respectively, the statement dblAvg = intTotalScore / intTests will . a. assign 0 to the dblAvg variable b. result in a...

Draw a class diagram and its relationship based on the following statements. You can use any UML tool/software to represent your class diagram. Do NOT copy and paste your diagram, use the attachment...