Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question 19 12 pts given the information about a r

Question 19 12 pts Given the information about a risky portfolio, composed of stocks X...

70.2K

Verified Solution

Question

Finance

image

Question 19 12 pts Given the information about a risky portfolio, composed of stocks X and Y answer the following questions: Expected Weight Standard deviation return Stock X 0.2 22% 10% Stock Y 0.8 28% 15% Covariance of X and Y- 0.015 Risk-free rate 6% (a) What is the expected return of the portfolio? (ex. round 12.345 to 12.35 percent, do not include % sign nor write "percent") (b) What is the variance of the portfolio? (ex. round the variance up to the 4th decimal place: 0.12345 to 0.1235) (c) What is the standard deviation of the portfolio? (calculate using your answer from (b), do not include % sign nor write "percent") (d) What is the Sharpe ratio of the portfolio? (calculate using your answers from (a) to (c), round to the 2nd decimal place: 3.456 to 3.46) (e) What is the 5% VaR of the portfolio assuming normal distribution (use 5% of normal distribution=-1.645)? (ex. round 12.345 to 12.35 percent, do not include % sign nor write "percent") %

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Psychology
1.2K views

How and why did industrial capitalism bring about global transformation?

Psychology
1.2K views

five advantages and five disadvantages of Glasser choice theory

Basic Math
1.2K views

The half-life of Palladium-100 is 4 days. After 20 days a sample of Palladium-100 has...

Accounting
1.2K views

Calculate return on common equity (ROCE) for Year 2019 using year-end amounts and...

Accounting
1.2K views

La entrada de cierre para dividendos implica un dbito a ______ y un crdito a:...

Accounting
1.2K views

Question 8 of 30. Which of the following is an example of an in-person random...

Accounting
1.2K views

Abany Bookstore is the bookstore on campus for students and faculty. The bookstore shows the...

Accounting
1.2K views

Jacks Bottleshop Ltd is a business selling liquor. The company has two shareholders, Mr Daniels...

Accounting
1.2K views

Beckner Inc. is a job-order manufacturer. The company uses a predetermined overhead rate based on...

Accounting
1.2K views

Integrative Exercise Integrating Asset Accounting Obtain Apple's fiscal 2016 10-K (filed October 26, 2016) either...

Accounting
1.2K views

Your team is working hard to develop a strategy to serve a new client. Which...

Finance
1.2K views

Please answer both questions, thanks.