Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Statistics and Probability Expert

describe expected returns and risk in portfolio.

Presume the expected return as well as the standard deviation on the Market Portfolio M are E (RM) = 12% and σM = 20%, respectively.

1) When the Sharpe Ratio for the market portfolio is 0.5 and what risk-free rate Rf is the market anticipate? Depict on a diagram for the Capital Market Line derived from the above data. Make sure to clarify the intercept as well as the slope.

2) What must be the expected return of a well-diversified portfolio P (that is portfolios on the ML) with a volatility of 15%?

3) Suppose portfolio P has a standard deviation of 10% as well as an expected return of 6.5%. Is this portfolio efficient?

4) What must be the standard deviation of an efficient portfolio with a beta of 0.4? describe

Statistics and Probability, Statistics

  • Category:- Statistics and Probability
  • Reference No.:- M922216

Have any Question? 


Related Questions in Statistics and Probability

A certain disease has an incidence rate of 03 if the false

A certain disease has an incidence rate of 0.3%. If the false negative rate is 6% and the false positive rate is 4%, compute the probability that a person who tests positive actually has the disease. Please include detai ...

Write a response to what is listed below using 50 or more

Write a response to what is listed below using 50 or more words. Give you opinions and examples and please explain them. Probability, which measures the likelihood that an event will occur, is an important part of statis ...

Write a matlab program to generate a bernoulli

Write a MATLAB program to generate a Bernoulli process X[n] for which each time instant of the process is a Bernoulli random variable with Pr(X[n]=1) = 0.1  and Pr(X[n]=0) = 0.9  Also, the process is IID (i.e., X[n] is i ...

A shot noise process with random amplitudes is defined

A shot noise process with random amplitudes is defined by where the are a sequence of points from a Poisson process and the A i  are IID random variables which are also indpendent of the Poisson points. (a) Find the mean ...

Let x t be a wide sense stationary random process that is

Let X (t) be a wide sense stationary random process that is ergodic in the mean and the autocorrelation. However   X (t) is not zero-mean.   where C is a random variable independent of X (t) and is not zero-mean. Show th ...

Q1 state the complement of each of the following setsa

Q1. State the complement of each of the following sets: (a) Engineers with less than 36 months of full-time employment. (b) Samples of cement blocks with compressive strength less than 6000 kilograms per square centimete ...

A project team is studying the downtime cost of a soft

A project team is studying the downtime cost of a soft drink bottling line. Data analysis in thousands of dollars for a three-month period is: Back-Pressure Regulator, 30; Adjust Feed Worn, 15; Jam Copper Head, 6; Lost C ...

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise safety. (a) How large a sample would be needed to estimate the true proportion of jets with the wir ...

In a digital communication system a block of data bits is

In a digital communication system, a block of data bits is mapped into an -bit codeword that typically contains the information bits as well as redundant bits. This is known as an block code. The redundant bits are inclu ...

Practice problem assignment - probability1 you are planning

Practice Problem Assignment - Probability 1. You are planning an experiment with combination drug therapy. You have four different medications, Alphacillin, Betacillin, Chicillin and Deltacillin. You want to do a trial t ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

A cola-dispensing machine is set to dispense 9 ounces of

A cola-dispensing machine is set to dispense 9 ounces of cola per cup, with a standard deviation of 1.0 ounce. The manuf

What is marketingbullwhat is marketing think back to your

What is Marketing? • "What is marketing"? Think back to your impressions before you started this class versus how you

Question -your client david smith runs a small it

QUESTION - Your client, David Smith runs a small IT consulting business specialising in computer software and techno

Inspection of a random sample of 22 aircraft showed that 15

Inspection of a random sample of 22 aircraft showed that 15 needed repairs to fix a wiring problem that might compromise

Effective hrmquestionhow can an effective hrm system help

Effective HRM Question How can an effective HRM system help facilitate the achievement of an organization's strate