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]
3 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]3 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 Quality Analyst wants to construct a sample mean chart for controlling a packaging process. He knows from past experience that
ZanzabumX [31]

On Monday and Tuesday, the process appears to be out of control.                                                                                                                                                

<u>Explanation</u>:

  • There are five days Monday, Tuesday,Wednesday, Thursday and Friday. Monday and Tuesday have weight up to 21. Wednesday weights up to 21.
  • Thursday and Friday weigh up to 20. Except for Monday and Tuesday, all the days have packaged up to the value of  21. So Monday and Tuesday are the days that appear to be out of control.
  • On checking the package for each day he came to know that Monday and Tuesday have process out of control.

       

                                                                                         

7 0
2 years ago
Need help on some questions.. easy points...
lilavasa [31]

11. Prioritizing steps to solve the problem.

12. Addressing the cause of the problem

13. To reach fair negotiations with all concerned parties.

I'm not 100% certain on these answers but I hope I help to my best ability.

3 0
2 years ago
Read 2 more answers
A hard drive has stamped on its label: lba = 7,814,037,168. this means that it has _____.
xxMikexx [17]
The LBA label means that Logical Block Addressing is used. It is a <span>common scheme used for specifying the location of blocks of data stored on computer storage devices.</span>
A hard drive has stamped on its label: lba = 7,814,037,168. this means that it has 7,814,037,168 sectors. Or more precisely, 7 platters, 814 cylinders, 37 heads and 168 sectors per track. 
8 0
3 years ago
The cost of direct materials transferred into the Filling Department of Eve Cosmetics Company is $91,050. The conversion cost fo
kupik [55]

Answer:

  • Cost of Direct material per unit  = $1.50 per unit
  • Cost of Conversion = $7.30 per unit

Explanation:

Cost of Direct material per unit is:

= Total cost of direct material / Total equivalent units for direct materials

= 91,050 / 60,700

= $1.50 per unit

Cost of conversion

= Total cost of Conversion / Total equivalent units for Conversion

= 497,860 / 68,200

= $7.30 per unit

7 0
2 years ago
In Patrick Henry's "Speech in the Virginia convention," why do you think Henry made allusions to homer's odyssey and the bible​
Artist 52 [7]

Answer: he most persuasive figures in Virginia politics. What historical, religious, event.

Explanation:

8 0
3 years ago
Other questions:
  • Seamus has to conduct market research on the viability of his​ company's new product. while planning his research he needs to de
    15·1 answer
  • A promise or order is only considered negotiable if ________. it states that the promise or order is subject to or governed by a
    12·1 answer
  • 13. Describe at least three other investments you want to make with your income either now or someday in the future. Explain why
    12·2 answers
  • A company has revenue of $1000 in 2009. Our current estimate is that revenues will grow 25% per year. Our profit each year will
    5·1 answer
  • Orange Co. is a manufacturer and Pineapple Company is a merchandiser. What is the difference in the budgets the two entities wil
    9·1 answer
  • Ross Electronics has one product in its ending inventory. Per unit data consist of the following: cost, $24; selling price, $40;
    11·1 answer
  • he Alford Group had 220,000 shares of common stock outstanding at January 1, 2018. The following activities affected common shar
    6·1 answer
  • 4. Why do people sometimes use credit to pay for items instead of just using cash?
    11·1 answer
  • Croulene Corp, an American company, starts its operations in China. Croulene has an inherent disadvantage in China because of it
    12·1 answer
  • Mariota Corp. just paid a dividend of $4.30 per share on its stock. The dividend growth rate is expected to be 3.2 forever and i
    9·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!