﻿ An investor invests 70% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 5%, and she puts 30% in a treasury bill that pays 5%. her portfolio's expected rate of return and standard deviation are - AssignmentGrade.com

# An investor invests 70% of her wealth in a risky asset with an expected rate of return of 15% and a variance of 5%, and she puts 30% in a treasury bill that pays 5%. her portfolio's expected rate of return and standard deviation are

QUESTION POSTED AT 29/05/2020 - 02:12 PM

We are given with different rate of returns and variance from different investment mediums. To calculate the rate of return we multiply the investment allocation to the rate of return same as the standard deviation.

ROI = 0.7 * 0.15 + 0.3*0.05 = 0.12
SD = 0.7 * sq rt 0.05 = 0.157

## Related questions

### It is estimated that it could take up to ____ for your liver to get rid of the alcohol in one standard drink.

QUESTION POSTED AT 02/06/2020 - 01:58 AM

### A sold merchandise for cash subject to a sales tax accepting cash will be recorded with a a. credit to an asset account. b. debit to a liability account. c. debit to capital. d. none of the above

QUESTION POSTED AT 02/06/2020 - 01:57 AM

### The rate quoted in the bond contract used to calculate the cash payments for interest is called the:

QUESTION POSTED AT 02/06/2020 - 01:42 AM

### Tourists flock to the United States for vacation after disposable income rises in Europe. Which determinant of aggregate demand causes the change? (Only choose one) a)Price b)Net exports c)Investment Spending d)Government Spending (This one is wrong) e)Consumer Spending f)Productivity g)Resource Cost h)Government intervention i)None of the above

QUESTION POSTED AT 01/06/2020 - 03:31 PM

### Martha realizes that the microwave she bought is faulty after a month of purchase. The manufacturer of the microwave asks Martha to pay the repair expenses as the fault was with a part that was out of warranty. Martha was unaware of this warranty condition. What should Martha do to resolve her grievance? A. pay for the repair B. contact the Food and Drug Administration C. approach the Federal Trade Commission D. buy a new microwave E. recycle the microwave responsibly

QUESTION POSTED AT 01/06/2020 - 02:57 PM

### I just turned 18, an I want to apply for a car loan. But as we all know, I don't have credit. I was think of having my mom co sign an all that but she doesn't have the best credit, does anyone know exactly how that would work? Would they also require you to put money down?

QUESTION POSTED AT 01/06/2020 - 02:51 PM

### Which method of evaluating capital investment proposals uses the concept of present value to compute a rate of return?

QUESTION POSTED AT 01/06/2020 - 01:58 PM

### What is the maximum amount you would pay for an asset that generates an income of \$250,000 at the end of each of five years, if the opportunity cost of using funds is 8 percent?

QUESTION POSTED AT 01/06/2020 - 01:57 PM

### Suppose changes in autonomous consumption affect investment while changes in autonomous government spending do not. in this case, identical changes in autonomous consumption and autonomous government spending

QUESTION POSTED AT 01/06/2020 - 01:55 PM

### Moe blunt came into jan's hardware store and purchased a hammer for \$16.75 plus a 5% tax. the total sales plus tax was:

QUESTION POSTED AT 01/06/2020 - 01:29 PM

### Gabriella has spent the morning reviewing data from the manufacturing department to determine whether finished products are meeting the quality standards established by the organization. which function of management does this best? describe?

QUESTION POSTED AT 01/06/2020 - 01:05 PM

### Contractionary fiscal policy that reduces the budget deficit may _____________ business investment by _________________ interest rates.

QUESTION POSTED AT 01/06/2020 - 01:01 PM

### An open market purchase by the fed has a tendency to: a. increase the demand for bonds, drive up bond prices, and raise interest rates. b. increase the demand for bonds, drive up bond prices, and lower interest rates. c. increase the supply of bonds, drive down bond prices, and raise interest rates. d. increase the supply of bonds, drive down bond prices, and lower interest rates.

QUESTION POSTED AT 01/06/2020 - 12:58 PM

### If you have a questioned item on your travel charge card bill, with whom do you first try to resolve it?

QUESTION POSTED AT 01/06/2020 - 12:51 PM

### A customer returns a defective item she recently purchased. she loves the merchandise, but the store doesnt have any more like it. what would you do?

QUESTION POSTED AT 01/06/2020 - 12:47 PM

### "consider noah's decision to go to college. if he goes to college, he will spend \$80,000 on tuition, \$15,000 on room and board, and \$4,000 on books. if he does not go to college, he will earn \$22,000 working in a store and he will spend \$13,000 on room and board. noah's cost of going to college is"

QUESTION POSTED AT 01/06/2020 - 12:46 PM

### It is estimated that it could take up to ____ for your liver to get rid of the alcohol in one standard drink. a. 10 minutes b. 20 minutes c. 1 hour

QUESTION POSTED AT 01/06/2020 - 12:40 PM

### When the federal reserve decreases the federal funds target rate, the lower rate is achieved through?

QUESTION POSTED AT 01/06/2020 - 12:19 PM

### Joan wants to get a \$1,000 loan from her local bank. she finds out the current interest rate is 17%. would you advise her to get the loan or to not get the loan.

QUESTION POSTED AT 01/06/2020 - 12:08 PM

### Ahrens Inc is preparing its January balance sheet. Ahrens has \$3,100 in Supplies to be converted in March, \$4,700 Notes Receivable to be converted in August, \$800 in Prepaid Insurance to be converted in April, and \$6,200 in Accounts Receivable to be converted in June. In what order should Ahrens list these assets?

QUESTION POSTED AT 01/06/2020 - 12:03 PM

### The amount Ron is able to save ____ when the government decided to cut the tax rate. This tax cut was a part of the government’s ____ policy. first blank: decrease, increase, remained constant second black: contractionary policy, development policy, exansionary policy

QUESTION POSTED AT 29/05/2020 - 04:30 PM

### You have \$5,400 to deposit. If you deposit the money in a savings account at your local bank, you will earn 1.49% annual interest and will be able to make ATM withdrawals at your bank’s ATMs. If you deposit the money in an online savings account, you will earn 4.44% annual interest, but you will be charged \$5 every time you make an ATM withdrawal. Assuming that your ATM withdrawals do not reduce the amount of interest you earn, roughly how many times a year can you make an ATM withdrawal in order for the local savings account to be a better deal than the online savings account? a. 32 b. 27 c. 22 d. 15

QUESTION POSTED AT 29/05/2020 - 03:22 PM

### In this scenario, Frankie must consider whether making one choice will force him to give up another. Based on what you have read, which economic concept is Frankie faced with? needs vs. wants opportunity cost risk and return goal setting The answer is Opportunity cost

QUESTION POSTED AT 29/05/2020 - 02:51 PM

### Looking for some furniture for her new apartment, Susan visits the local swap meet in search of something cheap. Knowing that most swap meet vendors will not accept credit cards and that she will not have any money until her next payday, Susan decides to take out a \$200 cash advance on her credit card at an interest rate of 32%. If Susan had no previous balance on her credit card, and she manages to pay off the balance within 1 month, how much will she have to pay in interest? a. \$5.33 b. \$32.00 c. \$173.33 d. \$205.33

QUESTION POSTED AT 29/05/2020 - 02:22 PM

### A firm has installed a manufacturing line for packing materials. the firm plans to produce 50 tons of packing peanuts at \$5000 per ton annually for 5 years, and then 80 tons of packing peanuts per year at \$5500 per ton for next 5 years. what is the present worth of the expected income? the firm's minimum attractive rate of return is 18% per year.

QUESTION POSTED AT 29/05/2020 - 02:19 PM

### A bank initially has \$190 million in assets and \$150 million in liabilities. the banks net worth (capital) is _____________ million. if the bank’s assets increase by 10% and its liabilities do not change, its capital increases by ____________ .

QUESTION POSTED AT 29/05/2020 - 02:19 PM

### G a company purchased a delivery van for \$28,000 with a salvage value of \$3,000 on september 1, year 1. it has an estimated useful life of 5 years. using the straight-line method, how much depreciation expense should the company recognize on december 31, year 1?

QUESTION POSTED AT 29/05/2020 - 02:16 PM

### ____________ is created when a customer is willing to pay more for a good or service than it costs the firm to produce it.

QUESTION POSTED AT 29/05/2020 - 02:16 PM

### Ace widget company is a process manufacturer. the company budgeted 11,500 direct labor hours but had actual direct labor hours of 12,000. the company produced 60,000 equivalent units, spending \$300,000 on material. labor rate is \$15 per hour, and overhead is applied at a rate of \$25 per direct labor hour. what is the total manufacturing cost per unit? round to the closest cent.

QUESTION POSTED AT 29/05/2020 - 02:12 PM

### Data collected in the imaginary economy of kharkeez reveals that when the price of bork increased by 20%, the quantity of bork sold decreased by 15%

QUESTION POSTED AT 29/05/2020 - 02:11 PM