Expected rate of return of portfolio
WebIn order to compute the return on the portfolio, the return for each investment must be determined. The return on investment can be computed by computing the expected … WebIts variance must be lower than those of all other securities or portfolios. b. Its expected return can be lower than the risk-free rate. c. It may be the optimal risky portfolio. d. It must include all individual securities. (a) Answer (a) is valid because it provides the definition of the minimum variance portfolio.
Expected rate of return of portfolio
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WebWhat is the reward-to-volatility (Sharpe) ratio for the equity fund? Expected return for equity fund = T-bill rate + Risk premium = 6% + 10% = 16% Expected rate of return of the … WebApr 5, 2024 · Portfolio A is expected to return 8% per year and has a 10% standard deviation or risk level. Portfolio B is expected to return 10% per year but has a 16% …
WebMar 29, 2024 · Based on a standard portfolio mix of 60% stocks and 40% bonds, the average rate of return for a 401(k) generally ranges from 5% to 8%. What is the most common type of investment in a 401(k)? WebThe expected rate of return on Ethan's portfolio over the next year is. The expected returns for Ethan's portfolio were calculated based on three possible conditions in the market. Such conditions will vary from time to …
WebFeb 25, 2024 · For a portfolio, you will calculate expected return based on the expected rates of return of each individual asset. But expected rate of return is an inherently … WebFinance. Finance questions and answers. 1. Assume CAPM holds. The expected rate of return of the market portfolio is 18% and the standard deviation of the market portfolio …
WebNov 30, 2024 · The expected return of the overall portfolio would be 7.85%. We arrive at this result by using the formula above: (35% x 6%) + (25% x 7%) + (40% x 10%) = …
Webis 10%. The correlation coefficient between the return on A and B is 0%. The expected return on the minimum variance portfolio is approximately _____. A. 10.00% B. 13.60% … senate race in texasWebMay 1, 2004 · Expected returns Required returns Alpha values F plc 18% 5% + (15% - 5%) -2% 1.5 = 20% G plc 18% 5% + (15% - 5%) +2% 1.1 = 16% Sell shares in F plc as the expected return does not compensate the investors for its perceived level of systematic risk, it has a negative alpha. senate press secretaries associationWebThe expected returns on these three stocks are 10 percent, 13 percent, and 15 percent, respectively. What is the expected return on the portfolio?, Consider the following information: State of Economy Probability of State of Economy Rate of Return if State Occurs Recession .20 -.09 Normal .50 .11 Boom .30 .30 Calculate the expected return ... senate race who wonWebThe market portfolio has expected return of 12% and risk of 19%, and the risk-free rate is 5%. According to the CML, what is the portfolio weight for the risky market portfolio if an investor wants to achieve 8.5% return? ... Security A has an expected rate of return of … senate race right nowWebIf the portfolio is purchased for $118,421 and provides an expected cash inflow of $135,000, then the expected rate of return [E(r)] is as follows: _____ $118,421 × [1 + … senate race on fox newsWebMar 29, 2024 · Based on a standard portfolio mix of 60% stocks and 40% bonds, the average rate of return for a 401(k) generally ranges from 5% to 8%. What is the most … senate race polls 2020WebExpert Answer. Transcribed image text: Problem 6-15 You manage a risky portfolio with an expected rate of return of 17% and a standard deviation of 36%. The brates 6% Your client chooses to invest 75% of a portfolio in your fund and 25% in a T-bill money market fund What is the reward-to-volatility (Sharpe) ratio (s) of your risky portfolio? senate race wi 2022