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NemiM [27]
3 years ago
12

You manage a risky portfolio with an expected rate of return of 22% and a standard deviation of 35%. The T-bill rate is 6%. Your

client chooses to invest 75% of a portfolio in your fund and 25% in an essentially risk-free money market fund. a. What is the expected return and standard deviation of the rate of return on his portfolio?Expected return % per year
Standard deviation % per year
b. Suppose your risky portfolio includes the following investments in the given proportions:
Stock A 30%
Stock B 35%
Stock C 35%
What are the investment proportions of your client’s overall portfolio, including the position in T-bills? (Round your answers to 2 decimal places.)
Security Investment
Proportions
T-Bills %
Stock A %
Stock B %
Stock C %
c. What is the reward-to-volatility ratio (S) of your risky portfolio and your client's overall portfolio? (Round your answers to 4 decimal places.)
Reward-to-Volatility Ratio
Risky portfolio
Client’s overall portfolio
Business
1 answer:
muminat3 years ago
5 0

Answer

The answer and procedures of the exercise are attached in the following archives.

Explanation  

You will find the procedures, formulas or necessary explanations in the archive attached below. If you have any question ask and I will aclare your doubts kindly.  

Download xlsx
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Answer:

The answer is: Democratic management style

Explanation:

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As a downside, these organizations tend be more messy (informal) and decision making processes are very time consuming.

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3 years ago
When a company determines the most likely people to buy its product are 20-27 year old middle class women, it is
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When a company determines that a group of people of certain age range and gender will likely buy its product, it is finding its: <em>potential customers/market target.</em>

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6 0
3 years ago
Which of the following is not considered when you are calculating cost of quality?
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Cost of Quality is calculated as :

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4 0
3 years ago
"Bill thought he had received the best deal on his new car. Shortly after the purchase, Bill started to notice certain disadvant
prohojiy [21]

Answer:

Cognitive dissonance

Explanation:

Cognitive dissonance is the term which occurs or happen when the tension arises among the attitudes or beliefs of the person and the decision that contradicts with those pre- existing thinking modes.

In short, it means that it occurs when a person select among the two equally unappealing or equally attractive options.

So, in this case, Bill thinks that he had received the best deal for the car, but after purchasing, he noticed the disadvantages of the car as he learned regarding the new cars. Therefore, he is experiencing the cognitive dissonance.

6 0
3 years ago
The fiscal 2016 financial statements of Nike Inc. shows net operating profit margin (NOPM) of 11.4%, net operating asset turnove
Solnce55 [7]

Answer:

-13.562%

Explanation:

Data provided in the question:

Net operating profit margin (NOPM) = 11.4%

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Now,

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or

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therefore,

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= -13.562%

5 0
3 years ago
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