Question: We have two stocks A and B with returns and risks as follows. Assuming the risk free rate is 5%, fill in the following table.

We have two stocks A and B with returns and risks

We have two stocks A and B with returns and risks as follows. Assuming the risk free rate is 5%, fill in the following table. stock return risk(stdev) Sharpe Ratio A B 16% 8% 20% 10% Assuming the two stock returns has zero correlation and we want to invest 50 percentage to stock A and 50 percentage to stock B, what is the Sharpe ratio of the portfolio? B total return Sharpe Ra- tio total risk 50% 50%

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!

6. We have two stocks A and B with returns and risks as follows. Assuming the risk free rate is 5%, fill in the following table. return risk(stdev) Sharpe Ratio stock A B 20% 15% 12% 18% Assuming the...

We have two stocks A and B with returns and risks as follows. Assuming the risk free rate is 5%, fill in the following table. stock return risk(stdev) B. 16% 8% 20% 10% Please draw the feasible set,...

5. We have two stocks A and B with returns and risks as follows. Assuming the risk free rate is 5%, fill in the following table. stock return A B 15% 12% risk(stdev) Sharpe Ratio 20% 18%

9. We have two stocks A and B with returns and risks as follows. Assuming the risk free rate is 5%, fill in the following table. stock B return 15% 12% risk(stdev) 20% 18% Please draw the feasible...

7. We have two stocks A and B with returns and risks as follows. stock return risk(stdev) correlation 30% A B 15% 12% 20% 18% Assuming the risk free rate is 5%, please construct a portfolio with the...

(a) NP and Co. has imported goods for US $ 7,00,000. The amount is payable after three months. The company has also exported goods for US $ 4,50,000 and this amount is receivable in two months. For...

Hi I just need you to help me to do a introduction about the paper you can read the whole paper simply and make a professional intro which has to be matched with the requirement. Introduction You are...

Please help answer these questions please. I cannot get this segment that were learning at all. A Job at S&S Air You recently graduated from college, and your job search led you to S&S Air. Because...

1) The following are the closing prices for two stocks (A and B) over a 6-day period. Stock A Day 1 2 3 4 5 Price $10 $8 $9 $12 $15 $18 1 Stock B 2 3 $3 $4 Day Price 6 4 $2 5 $3 $2 $4 a) Suppose...

Please answer the questions below with details in step!! 1) s) The following are the closing prices for two stocks (A and B) over a 6-day period. Stock A Day 1 2 3 4 5 6 Price $10 $8 $9 $12 SIS $18...

ActiveBC Ltd. is a CCPC that operates solely in BC. For the 2020 taxation year it had Net Income of $450,000 (consisting of $400,000 in Canadian Active business income and $50,000 in Aggregate...

Q2(a) Solve the differential equation using Laplace transform Y(s) and inverse Laplace transform, y(t). y" + y = cost + cos(t n) sin(t n), y(0) = 2 and y'(0) = 1 (10 marks) (b) Given the function:...

1 ) Over the next two years Amanda plans to continue living at her parent s home. She is a 2 4 - year - old recent graduate, has started her first full - time job and wants to build her financial...

Job description is a written description of the essential functions of a job that includes tasks, knowledge, skills, abilities and other along with the reporting structure. True False Job analysis is...

6. What is meant by: accessibility carries greater weight than relevance?

1. To learn how to develop a vision that can be communicated. To gain insight into the importance of game theory for communication strategies.

9. Take a view or attitude that you hold strongly. Search for information that is opposed to this view or attitude. Discuss.