Mathematics, 05.05.2020 13:57, coxb234
Rachel is a financial investor who actively buys and sells in the securities market. Now she has a portfolio of all blue chips, including: $13,500 of Share A, $7,600 of Share B, $14,700 of Share C, and $5,500 of Share D. Required: a) Compute the weights of the assets in Rachel’s portfolio? (2 marks) b) If Rachel’s portfolio has provided her with returns of 9.7%, 12.4%, -5.5% and 17.2% over the past four years, respectively, calculate the geometric average return of the portfolio for this period. (2 marks) c) Assume that expected return of the stock A in Rachel’s portfolio is 13.6% this year. The risk premium on the stocks of the same industry are 4.8%, betas of these stocks is 1.5 and the inflation rate was 2.7%. Calculate the risk-free rate of return using Capital Market Asset Pricing Model (CAPM). (2 marks) d) Following is forecast for economic situation and Rachel’s portfolio returns next year, calculate the expected return, variance and standard deviation of the portfolio
Answers: 1
Mathematics, 21.06.2019 18:00, Mrlittlefish
What is the location of point g, which partitions the directed line segment from d to f into a 5: 4 ratio? –1 0 2 3
Answers: 1
Mathematics, 22.06.2019 01:00, jasminebrown72
Mia’s gross pay is 2953 her deductions total 724.15 what percent if her gross pay is take-home pay
Answers: 1
Mathematics, 22.06.2019 01:30, malikbryant2002
At store a, erasers are sold individually. the cost y of x erasers is represented by the equation y=0.75x. the costs of erasers at store b are shown in the graph.
Answers: 2
Rachel is a financial investor who actively buys and sells in the securities market. Now she has a p...
History, 22.04.2020 21:30
Mathematics, 22.04.2020 21:30
English, 22.04.2020 21:30
Mathematics, 22.04.2020 21:30
Mathematics, 22.04.2020 21:30