Required: You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. What is the reward-to-volatility (Sharpe) ratio for the equity fund? (Round your answer to 4 decimal places.) Reward-to-volatility Ratio
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- Required: You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. What are the expected return and standard deviation of your client’s portfolio? (Do not round intermediate calculations. Round your answers to 1 decimal place.) equired: You manage an equity fund with an expected risk premium of 10% and a standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. What is the reward-to-volatility (Sharpe) ratio for the equity fund? (Round your answer to 4 decimal places.)Required: You manage an equity fund with an expected risk premium of 12.2% and a standard deviation of 36%. The rate on Treasury bills is 4.4%. Your client chooses to invest $90,000 of her portfolio in your equity fund and $110,000 in a T-bill money market fund. What is the reward-to-volatility (Sharpe) ratio for the equity fund? (Round your answer to 4 decimal places.) Reward-to-volatility Ratio 0.0975Required: You manage an equity fund with an expected risk premium of 13.4% and a standard deviation of 48%. The rate on Treasury bills is 5.6%. Your client chooses to invest $105,000 of her portfolio in your equity fund and $45,000 in a T-bill money market fund. What are the expected return and standard deviation of your client's portfolio? (Round your answers to 2 decimal places.) Expected Return Standard Deviation % %
- Please show working Please answer ALL OF QUESTIONS 1 AND 2 1. Suppose you are the money manager of a $4.95 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment Beta A $ 280,000 1.50 B 460,000 (0.50) C 1,260,000 1.25 D 2,950,000 0.75 If the market's required rate of return is 8% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. 2. Madsen Motors's bonds have 13 years remaining to maturity. Interest is paid annually; they have a $1,000 par value; the coupon interest rate is 10%; and the yield to maturity is 5%. What is the bond's current market price? Round your answer to the nearest cent.1. You manage an equity fund, Panda Eyes, with an expected risk premium of 10% anda standard deviation of 14%. The risk-free rate is 6%. Your client chooses to invest£60,000 of their portfolio in your equity fund and £40,000 in the risk-free rate. # Calculate the expected return and standard deviation of the return onyour client’s portfolio.8. You manage an equity fund with an expected risk premium of 10% and an expected standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. What are the expected return and standard deviation of return on your client's portfolio? 9. What is the reward-to-volatility (Sharpe) ratio for the equity fund in CFA Problem 8?
- 4. Suppose you are a money manager of a $10 million investment fund. The fund is invested in three assets with the following investments and betas: Investment Beta 1.80 0.75 1.20 The remainder is invested in T-bills (risk free asset) with 3% return. a. If the market expected rate of return is 9% what is the fund's expected rate of return? b. Using Funds A and B, create a portfolio (report the portfolio weights and $ investment out of $10 million) with a 0.92 beta. Stock A B C $3,000,000 2,000,000 4,000,000Suppose you are the money manager of a $4.93 million investment fund. The fund consists of four stocks with the following investments and betas: Stock Investment A $ 320,000 620,000 B C 1,340,000 D 2,650,000 0.75 If the market's required rate of return is 10% and the risk-free rate is 4%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places. % Beta 1.50 (0.50) 1.255. You manage an equity fund with an expected risk premium of 8% and an expected standard deviation of 10%. The rate on Treasury bills is 5%. Your client chooses to invest OMR70,000 of her portfolio in your equity fund and OMR30,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client's portfolio?
- You manage an equity fund with an expected risk premium of 11.2% and a standard deviation of 26%. The rate on Treasury bills is 4.2%. Your client chooses to invest $70,000 of her portfolio in your equity fund and $30,000 in a T-bill money market fund. What are the expected return and standard deviation of your client’s portfolio? (Round your answers to 2 decimal places.)A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term bond fund, and the third is a money market fund that provides a safe return of 8%. The characteristics of the risky funds are as follows: Expected Return. Stock fund (5) Bond fund (B) The correlation between the fund returns is 0.10. 19% 14 Reg A1 Standard Deviation Required: a-1. What are the investment proportions in the minimum-variance portfolio of the two risky funds? a-2. What are the expected value and standard deviation of the minimum-variance portfolio rate of return? 31% 23 Complete this question by entering your answers in the tabs below. Reg A2 What are the expected value and standard deviation of the minimum-variance portfolio rate of return? Note: Do not round intermediate calculations. Enter your answers as decimals rounded to 4 places.What follows is a numeric fill in the blank question with 5 blanks.You manage an equity fund with an expected risk premium of 10% and an expected standard deviation of 14%. The rate on Treasury bills is 6%. Your client chooses to invest $60,000 of her portfolio in your equity fund and $40,000 in a T-bill money market fund. What is the expected return and standard deviation of return on your client’s portfolio? a. Expected return for equity fund: Blank 1. Fill in the blank, read surrounding text. %. b. Expected rate of return of the client’s portfolio: Blank 2. Fill in the blank, read surrounding text % c. Expected Return of the client's portfolio: $ Blank 3. Fill in the blank, read surrounding text. d. The standard deviation of the client's overall portfolio: Blank 4. Fill in the blank, read surrounding text. % (Round to one decimal place.) e. Calculate the Sharpe ratio for the equity fund: Blank 5. Fill in the blank, read surrounding text. (Round to TWO decimal places.)