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You have $800,000 invested in a complete portfolio that consists of a portfolio of risky assets

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You have $800,000 invested in a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets.;E(rp)=12.00%;?p =7.00%;T-Bill rate=3.6%;Proportion of T-Bill in the complete portfolio: 20%;Proportion of risky portfolio P in the complete portfolio: 80%;Composition of P;Stock A 40%;Stock B 25%;Stock C 35%;Total 100%;1) What is the expected return on your complete portfolio?;2) What is the standard deviation of your complete portfolio?;3) What are the dollar amounts of Stocks A, B, and C, respectively, in your complete portfolio?;4) If your degree of risk aversion is A=4, is your complete portfolio optimal? (assuming P is the optimal risky portfolio);Additional Requirements;Level of Detail: Show all work

 

Paper#23379 | Written in 18-Jul-2015

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