Expected rate of return of portfolio
WebThe 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 ... WebExpert 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?
Expected rate of return of portfolio
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WebConsider the following probability distribution for stocks A and B: If you invest 35% of your money in A and 65% in B, what would be your portfolio's expected rate of return and standard deviation? Expert Answer Calculation- Note- Return1,sd1,& w1 … View the full answer Previous question Next question 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%) = … WebThe 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 …
WebIf 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 + … WebApr 14, 2024 · To calculate expected rate of return, you multiply the expected rate of return for each asset by that asset’s weight as part of the portfolio. You then add each of those …
WebExpected rate of return of the client's portfolio = (0.6 × 16%) + (0.4 × 6%) = 12% Expected return of the client's portfolio = 0.12 × $100,000 = $12,000 (which implies expected total wealth at the end of the period = $112,000) Standard deviation of client's overall portfolio = 0.6 × 14% = 8.4% Reward-to-volatility ratio =.10/.14=0.71
WebThe expected return of the portfolio is calculated by aggregating the product of weight and the expected return for each asset or asset class: Expected return of the investment … tempering kitWebIts 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. tempererad zon klimatWebFeb 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 … tempering machine ukWebThe expected returns on these three stocks are 10 percent, 13 percent, and 15 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return = Stock A x Stock B Product stock X = 0.19 x 10 Product stock X = 1.9 tempering in hindiWebApr 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% … tempering meaning engineeringWebJun 14, 2024 · The expected rate of return — also known as expected return — is the profit or loss an investor expects from an investment, given historical rates of return and … tempering meaning in bakingWebThe market price of a security is $50. Its expected rate of return is 14%. The risk-free rate is 6% and the market risk premium is 8.5%. What will be the market price of the security … tempering meaning in telugu