Answer:
Expected return is 11.06%.
Step-by-step explanation:
Capital allocation between Optimal risky portfolio and risk free assets can be computed with following equation.
y = E(rp) - rf /A*θp^2
where,
E(rp) = Expected return of Portfolio
y = weight of risky portfolio
(1-y) = weight of risk free assets
rf = risk free rate
A = Coefficient of Risk Aversion
Фp= Standard deviation of risky portfolio
Putting the values,
y = {0.124-0.04}/{2.5*0.20^2}
by solving,
y = 0.84
Weight of risk free assets in complete portfolio = (1-y) = 1-0.84 = 0.16
Thus,
Expected return of complete portfolio:
E(r_c) = 0.124*0.84+0.04*0.16
E(r_c) = 11.06%
Answer:
Step-by-step explanation:
Given
There are
4 country music CD
1 rock and roll CD
2 rap CD
3 Tejano CD
Well, for starters, this is more of a question for you than it is for me yet here's something to give you an idea.... I think don't let it get personal and leave your life stories at the door. Also, don't ask yourself, "how can this be done or worked out,", ask the people and if they're biased it's hard to tell so just hope that they leave off topic, etc... Ideas and or comments. The best I can give you.
Answer:
5b
Step-by-step explanation:
<em>Hope this helps <3</em>