Question: You recommend to a client an actively managed fund with expected return of 18 percent and standard deviation of 28 percent. Your client also has

 You recommend to a client an actively managed fund with expected

You recommend to a client an actively managed fund with expected return of 18 percent and standard deviation of 28 percent. Your client also has access to a money market mutual fund yielding 8 percent. Markets are highly volatile at the moment and the client is looking for ways to minimize her exposure to volatility. She says she wants the highest return she can get, but would like the volatility of her complete portfolio to be no more than 20 percent. Please find the portfolio weight on the actively managed fund in the client's complete portfolio. Your answer should be a entered as a decimal rounded to two decimal places, e.g., enter 63% as 0.63 . You recommend to a client an actively managed fund with expected return of 18 percent and standard deviation of 28 percent. Your client also has access to a money market mutual fund yielding 8 percent. Markets are highly volatile at the moment and the client is looking for ways to minimize her exposure to volatility. She says she wants the highest return she can get, but would like the volatility of her complete portfolio to be no more than 20 percent. Please find the portfolio weight on the actively managed fund in the client's complete portfolio. Your answer should be a entered as a decimal rounded to two decimal places, e.g., enter 63% as 0.63

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