You are a portfolio manager of a global equity fund of funds UITF. You decided to hold a portfolio with 80 percent invested in the S&P 500 equity index fund and the remaining in the Blackrock Emerging Markets Index Fund. The expected return for the former is 9.93% and then 18.20% for the Blackrock Emerging Markets index. The risk (standard deviation) is 16.21 % for the S&P 500 and 33.11 % for the Blackrock Emerging Markets index. What will be the portfolio’s expected return?

The portfolio expected return is calculated as sum of weighted return of each investment. Weight of…

Answered: You are a portfolio manager of a global…

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter2: Risk And Return: Part I

Section: Chapter Questions

Problem 10P

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You are a portfolio manager of a global equity fund of funds UITF. You decided to hold a portfolio with 80 percent invested in the S&P 500 equity index fund and the remaining in the Blackrock Emerging Markets Index Fund. The expected return for the former is 9.93% and then 18.20% for the Blackrock Emerging Markets index. The risk (standard deviation) is 16.21 % for the S&P 500 and 33.11 % for the Blackrock Emerging Markets index. What will be the portfolio’s expected return?

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