An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 26% and a standard deviation of return of 34%. Stock B has an expected return of 20% and a standard deviation of return of 39%. The correlation coefficient between the returns on A and B is 0.56. How much should an investor put in stock B if he requires expected return of 23.35% on the risky portfolio?

If an investor that owns a portfolio with 3 stocks increases their portfolio to 30 stocks, which of the following is MOST LIKELY to happen? Select one: a. risk will increase b. risk would decrease c. Systematic risk would increase d. return would increase

An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 17% and a standard deviation of return of 28%. Stock B has an expected return of 15% and a standard deviation of return of 15%. The correlation coefficient between the returns of A and B is 0.8. The risk-free rate of return is 3.2%. What is the expected return on the optimal risky portfolio?   Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Answer completely. You will get up vote for sure.

An investor aims to build a portfolio with annual return equal to 8.88%. In the market only two stocks (A and B) are available, with annual historical returns equal to 9.6% and 7.8% respectively. Assume future returns have the same distribution of past returns. What is the percentage of funds that the investor must allocate to the stock A and B?

Consider a portfolio that offers an expected rate of return of 11% and a standard deviation of 26%. T-bills offer a risk-free 7% rate of return.   What is the maximum level of risk aversion for which the risky portfolio is still preferred to T-bills? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Portfolio A has an expected return of 15% and a Sharpe ratio of 0.42. Portfolio B has an expected return of 20% and a Sharpe ratio of 0.37. Portfolio C has an expected return of 25% and a Sharpe ratio of 0.31. Among A, B, and C, rational risk-averse investors prefer to include which one into her complete portfolio? O There is not enough information to choose among A, B, C. O Portfolio B O Portfolio C O Portfolio A

You have the following information for stock portfolio A and bond portfolio B. The risk-free rate is 4.5%. THE optimal risky portfolio, P, has weights of 61.69% in A and 38.31% in B and has a standard deviation of 15.35%. What is the expected return of the optimal complete portfolio for an investor with a risk aversion parameter of A = 1.8?     A producer wants to set up a hedge on its expected November purchase of 60,000 bushels of soybeans using the November soybean futures contract. The current spot price for soybeans is 1105 and the current November soybean futures price is 1176. At delivery in November the soybean spot price is 1130. The producer buys the soybeans in the spot market and closes the soybeans futures position. What is the effective price per bushel the producer pays for the soybeans?     The expected return on the market is 12.0% and the risk-free rate is 4.0%. A stock with a beta of 1.3 has an expected return of 14.4%. Analysts expect the stock to pay a dividend…

An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return of 21% and a standard deviation of return of 39 %. Stock B has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is .4. The risk-free rate of return is 5%. The standard deviation of returns on the optimal risky portfolio is Multiple Choice 25.5% 22.3% 21.4% 20.7% O 11:18PM 20/200

There are two securities: Stock G and stock H. Stcok G has expected return of 12% and a standard deviation of 20% while stock H has an expected return of 3.5% and a standard deviation of 4%. The correlation coefficient between the two securities is 0.35. The risk free rate is 3%. 1. What is the weight of stock G in the optimal risky portfolio ? 2. What does a negative weight in stock H mean?

Consider a portfolio consisting of the three risky stocks. You decide to invest 25 percent in Apple, 35 percent in HP and 40 percent in Spree. These stocks show the volatility at the level of 11.15 percent, 24.4 percent and 15.29 percent, and the correlation with the market portfolio at the level of 0.65, 0.83 and 0.36, respectively. Calculate the expected portfolio return using CAPM if the market portfolio shows the expected return of 12.88 percent and its volatility is 10.05 percent. The risk-free rate of return is 3.31 percent. Please make sure your answer is correct tutor. Out of my questions in Bartleby, 90% are wrong all the time. Which is resulting also to my low grades. Don't get it if you don't know the answer. Please use TEXT. not snip or handwriting. Thank you