You invest $1000 in 2 ETF. Assume that normal ETF return = Rm. Suppose this year's Rm

Fantastic news! We've Found the answer you've been seeking!

Question:

You invest $1000 in 2 ETF. Assume that normal ETF return = Rm. Suppose this year's Rm = 8%, risk free rate = 1%, buying on leverage rate = 1%. Your rate of return (of $1000) this year is?

Related Book For answer-question

Financial Management Theory and Practice

ISBN: 978-0176517304

2nd Canadian edition

Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason

See More Books

Posted Date: May 08, 2024 06:20 AM

See More Questions

Find a person and respectfully ask if they would not mind being interviewed for this school assignment. If it's someone you know, that's fine. Our SAS Department might help you find a person if you...
CANMNMM January of this year. (a) Each item will be held in a record. Describe all the data structures that must refer to these records to implement the required functionality. Describe all the...
Using the information from 2-16, create a cash flow statement for 2013. In 2-16 Bristle Brush-Off Corporation: Income Statements for Years Ended December 31 ($000s) 2013 2012 $7,950 5,100 350 750...
If you want to hedge a caplet using a zero-coupon bond of maturity (T + ), what is the hedge ratio that you should use?
The average age of engineering students at graduation is a little over 23 years. This means that the working career of most engineers is almost exactly 500 months. How much would an engineer need to...
Anna Judge practiced law with a partnership for 10 years. Recently she opened her own law office, which she operates as a professional corporation. Ihe name of the new entity is Anna Judge, Attorney,...
The following letter was sent to the SEC and the FASB by leaders of the business community. Dear Sirs: The FASB has been struggling with accounting for derivatives and hedging for many years. The...
Futures can be used as a risk managing tool. Discuss the above statement. You are required to support your discussion with relevant examples. (12 marks)
What is the different between sustaining and disruptive technology? Do you consider the Internet and WWW forms of sustaining or disruptive technology? How has the Internet and WWW created a global...
How does the aging of the workforce affect organizations?
A 100 nC charge is placed at the center of a 4 cm radius sphere. This produces a net electric flux through the surface. When the charge is moved 1cm off center, what is the new electric flux through...
When Does a Bilateral Agreement Go into Effect? Suppose in the previous example, Sailors Maritime had said to Barnes and Layton, We will consider your written acceptance of this new proposal as...
A man runs at a speed of 5 m / s to overtake a standing bus. When he is 4 m behind the door ( t = 0 ) , the bus moves forward and continues with a constant acceleration of 1 . 1 m / s ^ 2 . How long...
A bodybuilder lifts a 280 N set of weights from ground level to a position over his head, a vertical distance of 1.85 m. How much work (in 3) does the bodybuilder do? Assume the weights are moved at...
A sphere of radius R, made from a material of specific gravity SG, is submerged in a tank of water. The sphere is placed over a hole of radius a in the tank bottom open to the atmosphere, as shown in...
Using the theoretical sampling strategy, how many samples of size 4 (n = 4) can be drawn from a population of size: (a) N = 5? (b) N = 8? (c) N = 16? (d) N = 50?
The initial tension in a flat belt drive is $1800 \mathrm{~N}$ and angle of lap on the smaller pulley is $170^{\circ}$. The coefficient of friction between belt and pulley surface is 0.25 . The...
It is required to reduce speed from 360 to $120 \mathrm{rpm}$ by the use of chain drive. The driving sprocket has 10 teeth. Calculate: (a) the number of teeth on the follower, (b) the pitch of...
The included angle of a V-grooved pulley is $30^{\circ}$. The belt is $20 \mathrm{~mm}$ deep and maximum width is $20 \mathrm{~mm}$. The mass of belt is $0.35 \mathrm{~kg}$ per metre length...

You invest $1000 in 2 ETF. Assume that normal ETF return = Rm. Suppose this year's Rm

Question:

Expert Answer:

Lets assume that you allocate a certain amount X1 to the first ETF and the remaining amount X2 to th... View the full answer

Financial Management Theory and Practice

Students also viewed these finance questions