An investor invests 75% of his wealth in a risky asset with an expected rate of return of 28% and a standard deviation of 30% and 25% in a treasury bill that pays 3%. What is the EXPECTED RETURN of the combined portfolio of t-bills and the risky asset?

An investor invests 30 percent of his wealth in a risky asset with an expected rate of return of 0.14 and a standard deviation of .35 and 70 percent in a T-bill that pays 3 percent. His portfolio's expected return and standard deviation are __________ and __________, respectively. Please show the formula

You invest $96 in a risky asset and the T-bill. The risky asset has an expected rate of return of 19% and a standard deviation of 0.22, and a T-bill with a rate of return of 4%. A portfolio that has an expected outcome of $110 is formed by investing what dollar amount in the risky asset? Round your answer to the nearest cent (2 decimal places).

Consider the following two options relatedto one of the old but special machine tools in yourmachine shop.• Option 1: You continue to use the old machinetool that was bought four years ago for $12,000.It has been fully depreciated but can be sold for$2,000. If kept, it could be used for three moreyears with proper maintenance and with someextra care. No salvage value is expected at the endof three years. The maintenance costs would run$10,000 per year for the old machine tool.• Option 2: You purchase a brand-new machinetool at a price of $15,000 to replace the presentequipment. Because of the nature of the productmanufactured, it also has an expected economiclife of three years and will have a salvage valueof $5,000 at the end of that time. With the newmachine tool, the expected operating and maintenance costs (with the scrap savings) amount to$3,000 each year for three years.(a) For the old machine tools, what would be theamount of sunk cost that should be recognizedin replacement…

State the return rate (in %) for your optimal portfolio.

Which of the following investments will experience the largest change in its market value as a result of changes in the level of interest rates (we are talking about the absolute value of the change, up or down)? Suppose interest rates go up or down by 50 basis points (0.5%). Rank the investments from 1 to 4 where a 1 is the most affected (largest absolute change in value) while a 4 is the least affected (smallest absolute change in value). A: $1 million invested in 3-month Treasury bills. 请选择~ B: $1 million invested in STRIPS (zero coupons) maturing in three years. |请选择 C: $1 million invested in a Treasury note maturing in three years. The note pays a 5% annual coupon. |请选择︾ D: $1 million invested in a Treasury note maturing in three years. The note pays a 10.0% annual coupon. |请选择

Suppose the market risk premium is 6.8% and the​ risk-free interest rate is 4.5%. Calculate the cost of capital of investing in a project with a beta of 1.4.

An investor invests 70% of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04. He also places 30% of his wealth in a T-bill that pays 5%. His portfolio's expected return and standard deviation are __________ and __________, respectively. Group of answer choices 0.120; 0.14 0.087; 0.06 0.295; 0.12 0.087; 0.12 0.895; 0.11

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?

The expected return for the investment is ??? The standard deviation is ??? While the expected return for the​ risk-free assets, Treasury​ Bills, is ??? The standard deviation is​ ???