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You invest $10,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected
A. $6,000
B. $4,000
C. $7,000
D. $3,000
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- ou invest $3,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 15% and a standard deviation of 20% and a Treasury bill with a rate of return of 10%. __________ of your complete portfolio should be invested in the risky portfolio if you want your complete portfolio to have a standard deviation of 8%.You have invested $1,000 in a risky asset with an expected rate of return of 0.17 and a standard deviation of 0.40 and a T-bill with a rate of return of 0.04. What percentages of your money must be invested in the risky asset and the risk-free asset, respectively, to form a portfolio with an expected return of 0.11? What percentages of your money must be invested in the risk-free asset and the risky asset, respectively, to form a portfolio with a standard deviation of 0.20? Calculate the slope of CAL. If the degree of risk aversion A=4, what proportion of the money should be invested in risky asset. Sub Parts to be solvedYou have invested $1,000 in a risky asset with an expected rate of return of 0.17 and a standard deviation of 0.40 and a T-bill with a rate of return of 0.04. What percentages of your money must be invested in the risky asset and the risk-free asset, respectively, to form a portfolio with an expected return of 0.11? What percentages of your money must be invested in the risk-free asset and the risky asset, respectively, to form a portfolio with a standard deviation of 0.20? Calculate the slope of CAL. If the degree of risk aversion A=4, what proportion of the money should be invested in risky asset.
- You invest R100 in a risky asset with an expected rate of return of 15% and a standard deviation of 20% and a T-bill with a rate of return of 4%. What percentages of your money must be invested in the risky asset and the risk-free asset, respectively, to form a portfolio with an expected return of 9%. What is the percentage invested in risky asset ?What is the percentage invested in risk-free asset ?Suppose you have $2,000 to invest. The market portfolio has an expected return of 10.5 percent and a standard deviation of 16 percent. The risk-free rate is 3.75 percent. How much should you invest in the risk-free asset if you wish to have a 15 percent return on the portfolio?You invest $100 in a risky asset with an expected return of 12% and a standard deviation of 15%, and a T-bill that pays 5%. [i]. If you desire to form a portfolio with an expected return of 9%, what percentages of your money must you invest in the T-bill? [ii]. If you desire to form a portfolio with a standard deviation of 9%, what percentages of your money must you invest in the T-bill?
- You invest $1,000 in a risky asset with an expected rate of return of 0.17 and a standard deviation of 0.40 and a T-bill with a rate of return of 0.04.What percentages of your money must be invested in the risky asset and the risk-free asset, respectively, to form a portfolio with an expected return of 0.11? A. 62.5% and 37.5% B. 53.8% and 46.2% C. Cannot be determined. D. 75% and 25% E. 46.2% and 53.8%You are considering investing $1000 in a complete portfolio. The complete portfolio is composed of Treasury notes that pay 5% and a risky portfolio, P, constructed with two risky securities X and Y. The optimal weights of X and Y in P are 60% and 40% respectively. X has an expected rate of return of 14% and Y has an expected rate of return of 10%. To form a complete portfolio with an expected rate of return of 11%, you should invest ________ of your complete portfolio in Treasury notes.Consider a position consisting of a K200,000 investment in Asset A and a K300,000 investment in Asset B. Assume that the daily volatilities of the assets are 1.5% and 1.8% respectively, and that the coefficient of correlation between their returns is 0.4. What is the five day 95% Value at Risk (VaR) for the portfolio (95% confidence level represents 1.65 standard deviations on the left side of a normal distribution)?
- You are considering investing $1000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 2.5% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 35% and 65%, respectively. X has an expected rate of return of 21%, and Y has an expected rate of return of 9%. The dollar values of your position in X would be _________, if you decide to hold a complete portfolio that has an expected return of 11%.You invest $1000 in a portfolio. Your portfolio is composed of a risky asset with an expected rate of return of 12% and a standard deviation of 10% and a treasury bill with a rate of return of 5%. __________ of your portfolio should be invested in the risk-free asset if you want your portfolio to have a standard deviation of 9%. A) 100% B) 90% C) 50% D) 10%You are considering investing $1000 in a complete portfolio. The complete portfolio is composed of Treasury bills that pay 2.5% and a risky portfolio, P, constructed with two risky securities, X and Y. The optimal weights of X and Y in P are 35% and 65%, respectively. X has an expected rate of return of 21%, and Y has an expected rate of return of 9%. The dollar values of your position in Y would be _________, if you decide to hold a complete portfolio that has an expected return of 11%. Note