Suppose you have a project that has a 0.4 chance of tripling your investment in a year and a 0.6 chance of doubling your investment in a year. What is the standard deviation of the rate of return on this investment? (Do not round intermediate calculations. Enter your answer as a decimal rounded to 4 places.)

Q: Suppose the rate of return on short-term government securities (perceived to be risk-free) is about…

A: a) Given: Expected rate of return on portfolio E(RP) = 12% Portfolio beta = 1 Risk free rate =5%…

Q: The composition of the Fingroup Fund portfolio is as follows: Stock Shares Price A 200000 $35…

A: With the given information, we can determine the net asset value as follows:

Q: Based on current dividend yields and expected capital gains, the expected rates or return on…

A: Hence, sharpe ratio of A is 5.71% and is calculated by dividing the difference of anticipated…

Q: Calculate Kish's required rate of return. Do not round intermediate calculations. Round your answer…

A: Beta is a measure of a security's or portfolio's volatility (or systematic risk) in comparison to…

Q: Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required…

A: A portfolio comprises of different securities, funds, assets and derivates which are purchased by…

Q: The Blackwell mutual fund has a stock portfolio that are consists of the following companies. Stock…

A: Beta It helps to measure the stock volatility related to an overall market. It is computed in order…

Q: mutual fund manager has a $20 million portfolio with a beta of 2.8. The risk-free rate is 2.5%, and…

A: We need to use CAPM equation to calculate beta value. The equation is Required return =risk free…

Q: Beale Manufacturing Company has a beta of 1.8, and Foley Industries has a beta of 0.20. The required…

A: In this question we require to calculate the required return for Beale Manufacturing Company and…

Q: Portfolio Required Return Suppose you manage a $4.4 million fund that consists of four stocks with…

A: Stock  investment Beta A 500000 1.5 B 650000 -0.5 C 1100000 1.25 D 2150000 0.75…

Q: Assume that you manage a $12.00 million mutual fund that has a beta of 1.15 and a 9.70% required…

A: Required return = Rf + Beta (Rm- Rf) Where, Rf = Risk free return  Rm = Market return  9.70 = 2.2 +…

Q: Suppose that the risk-free rate is 3.00% per annum. In addition, assume that the market portfolio…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub- parts…

Q: Reconsider the Fingroup Fund in the previous problem. If during the year the portfolio manager sells…

A: Answer -    Portfolio Turnover Rate -  Value of Assets Sold/ Replaced / Total Assets Value

Q: The composition of the Fingroup Fund portfolio is as follows:   Stock Shares Price A 280,000 $ 35…

A: The question is based on the concept of portfolio management.

Q: Beale Manufacturing Company has a beta of 1.5, and Foley Industries has a beta of 0.30. The required…

A: Calculation of required return: = Risk free rate + Beta (Market rate - Risk free rate)

Q: Assume that you are the portfolio manager of the SF Fund, a $3 million hedge fund that contains the…

A: Return for individual stock can be calculated with the help of below formula,

Q: Suppose you are the money manager of a $4.4 million investment fund. The fund consists of four…

A: A portfolio is a group of different securities held together with the objective of maximizing higher…

Q: Suppose you are the money manager of a $3.92 million investment fund. The fund consists of four…

A: Computation of portfolio beta: Hence, the portfolio beta is 0.71. Working note:

Q: If the risk free rate is 4 %, the expected return on the market portfolio is 1296 and the beta of…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five…

A: SML is the line which represents the CAPM. It provides expected return of market at different levels…

Q: You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five…

A: Expected Return: It is an expected loss or benefit(profit) generated on an investor's investment.…

Q: Assume that you are the portfolio manager of the SF Fund, a $3 million hedge fund that contains the…

A: Calculating beta of portfolio Beta of portfolio is weighted average beta of individual beta's

Q: ave $375,000 in​ cash, and you decide to borrow another $63,750 at a 7% interest rate to invest in…

A: The overall return earned over a duration of time from owning an asset or a portfolio of assets is…

Q: Portfolio Required Return Suppose you manage a $4.71 million fund that consists of four stocks with…

A: Portfolio required return helps in calculating the anticipated profit and losses from portfolio of…

Q: Curious George, a mutual fund manager, has a P40 million portfoilio with a beta of 1.00. The…

A: Beta is a financial metric which is used to measure the volatility of a stock. Beta measures the…

Q: The Blackwell mutual fund has a stock portfolio that are consists of the following companies. Stock…

A: stock proportional in the portfolio beta Gazprom 0.25 1.4 Shell 0.3 1.6 Exxon Mobil 0.3 1.5…

Q: Assume that you manage a $10.00 million mutual fund that has a beta of 1.05 and a 9.50% required…

A: Given: Particulars Old value New value Investment value $10,000,000 $11,500,000 Beta 1.05…

Q: If the risk free rate is 4 9%, the expected return on the market portfolio is 1296 and the beta of…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: You plan to invest in the Kish Hedge Fund, which has totalcapital of $500 million invested in five…

A: workings:

Q: Beale Manufacturing Company has a beta of 1.6, and Foley Industries has a beta of 0.55. The required…

A: The capital assets pricing model is a technique that helps to compute the required rate of return on…

Q: Suppose the rate of return on short-term government securities (perceived to be risk-free) is about…

A: according to CAPM model: rs=rf+βs×rm-rfwhere,rf= risk free returnrm= market returnβs= beta

Q: Suppose you are the money manager of a $5.39 million investment fund. The fund consists of four…

A: CAPM shows the different level of return at different level of risk. It consider market risk which…

Q: The investment funds for your company includes the following: Stock $ Amount Invested Beta for…

A: Beta represents the systematic risk of any company. This means that it basically indicates the…

Q: The portfolio manager of the TTY Fund, a $5 million hedge fund that contains the following stocks.…

A: The first step is to calculate the weight of each stock in the portfolio

Q: Beale Manufacturing Company has a beta of 1.3, and Foley Industries has a beta of 0.80. The required…

A: We need use CAPM equation to calculate required rate of return. The equation is  rs =Rf+ Beta…

Q: 2-9 We have the following information on a portfolio consisting of Stocks A, B, and C:…

A: Price per share = pA, pB and pC Number of shares = nA, nB and nC

Q: Suppose the rate of return on short-term government securities (perceived to be risk-free) is about…

A: In the given question we need to compute the Expected rate of return on the market portfolio in Part…

Q: You plan to invest in the Kish Hedge Fund, which has total capital of $500 million invested in five…

A: The security market line (SML) is a graphical representation of the capital asset pricing model that…

Q: What is the equation for the Security Market Line (SML)? (Hint: First determine the expected market…

A: Given, Risk free rate = 4%  Calculation of expected market return  The formula to calculate expected…

Q: If the risk free rate is 4 %, the expected return on the market portfolio is 129% and the beta of…

A: Financial management consists of directing, planning, organizing and controlling of financial…

Q: Beale Manufacturing Company has a beta of 1.5, and Foley Industries has a beta of 0.4. The required…

A: As per CAPM, required rate of return = risk free rate + beta * (return on market - risk free rate)

Q: Suppose you are the money manager of a $4.86 million investment fund. The fund consists of four…

A: Market return = 11% Risk free rate = 6%

Q: mutual fund manager has a $20 million portfolio with a beta of 1.7. The risk-free rate is 4.5%, and…

A: Portfolio Beta New Required return = Risk free return × portfolio beta( Market return - Risk free…

Q: A mutual fund manager has a $20 million portfolio with a beta of 2.7. The risk-free rate is 5.5%,…

A: Current fund value = $20 million Beta of the portfolio = 2.7 Rf = 5.5% (Rm - Rf) = 7%