1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
Tasya [4]
4 years ago
5

A portfolio consists of the following two funds. Fund A Fund B $ Invested $ 12,000 $ 8,000 Weight 60 % 40 % Exp Return 15 % 12 %

Std Dev 24 % 14 % Beta 1.92 1.27 Corr(A,B) 0.43 Riskfree rate 3.6 % What is the Sharpe ratio of the portfolio?
Business
1 answer:
vova2212 [387]4 years ago
7 0

Answer:

Sharpen Ratio   =            <u>    Rp  - Rf</u>

                         standard deviation of portfolio

                        =    <u>13.8%  - 3.6%</u>

                                     173.11%

                              =   0.05892

                              = 0.059

workings

Return of portfolio   =   Ra*wa  +  Rb*Wb

                            =  15%*0.6  +  12%*0.4  

                           =   9%  +  4.8%  =  13.8%

Standard deviation of portfolio =  square root of variance

= √ stdA²wa² + stadB²wb² + 2wawbcorrAB

= √(24%*0.6)² +(14%*0.4)²  + 2*0.6*0.4*1.27

=  √207.36% + 31.36% + 0.6096

=  √2.9968

= 1.73

=  173.11%

                                                 

Explanation:

You might be interested in
A firm has a profit margin of 6% and an equity multiplier of 1.5. Its sales are $230 million, and it has total assets of $115 mi
Ket [755]

Answer:

18%

Explanation:

In this question, we use the DuPont Analysis which is shown below:

ROE = Profit margin × Total assets turnover × Equity multiplier

ROE = 6% × 2 × 1.5

        = 18%

The total assets turnover is shown below:

= Sales ÷ total assets

= $230 million ÷ $115 million

= 2

Simply we apply the ROE formula in which the profit margin is multiplied with the total assets turnover and the equity multiplier

7 0
3 years ago
Which element in the article indicates that when the article refers to GDP, it is talking about inflation-adjusted GDP
Serjik [45]

Answer: inflation corrected or constant prices

Explanation:

Real gross domestic product is an inflation adjusted measure that reflects the value of all goods and services produced by a state economy in a year. It is often to as either constant dollar GDP, inflation corrected or constant prices

3 0
3 years ago
Smartphone applications are developed by _____.
kenny6666 [7]
Well, smartphone applications are developed by 1. manufacturers of the handheld device, 2. <span>third-party software developers and finally by </span><span>operators of the communications network on which they operate. </span>
6 0
3 years ago
Compare your results to the industry ratios and describe what NMC should do to improve its position in the market.
docker41 [41]

Answer:

sorry need points ok.

Explanation:

sorry talaga ha

pero wag kayong magalit

  1. ayaw kasuko
  2. wag kang magalit
  3. never angry

7 0
3 years ago
Emily is her family's kinkeeper. This means that she assumes responsibility for _____. the financial stability of the family car
gulaghasi [49]

Answer:

Gathering the family for holidays and disseminating information.

Explanation:

Emily is the kinkeeper of the family, which means she is the one who is responsible for nourishing the family members. Emily is liable to gather family member on different family occasions. Kinkeeper is also responsible for almost every family problem. Kinkeeper generally provides all the information to the member regarding family background and traditions.

3 0
3 years ago
Other questions:
  • It is known that roughly 2/3 of all human beings have a dominant right foot or eye. is there also right-sided dominance in kissi
    15·1 answer
  • _____ is high when customers have many choices and low when they have few choices.
    14·2 answers
  • A weaker dollar benefits ---------- and hurts-----------
    5·1 answer
  • Domino's Pizza was 50 years old in 2010. Visit the company's business-related website (www.dominosbiz) and read the company prof
    13·1 answer
  • Session Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based on direct labor-ho
    7·1 answer
  • The following information was reported by Young's Air Cargo Service for 2017: Net fixed assets (beginning of year) $ 1,860,000 N
    11·1 answer
  • Suppose Amazon.com has offered you free shipping on your next purchase of more than $35. This offer is an example of ________.
    10·1 answer
  • List three methods of searching the major tax service databases. A. ​Keyword, citation, or index B. ​Author, groupings, or conte
    13·1 answer
  • Max and Eli both graduated from the police academy. Max chose to work in a large city with high crime rates, while Eli chose a j
    6·2 answers
  • Ivanhoe purchased a patent from Vania Co. for $1,240,000 on January 1, 2018. The patent is being amortized over its remaining le
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!