What will be your new portfolio's standard deviation after the addition of XYZ?

) You estimate that the expected return of your portfolio is 30%. The standard deviation of the return is 25%. a. The returns of your portfolio are normally distributed. What is the probability of your portfolio suffering a loss greater than 20% (i.e., having a return that is less than -20%)? You may find the figure below helpful in answering the question (you can also use Excel). b. How would your answer to part a) change if the returns of your portfolio exhibited negative skewness (relative to the normal distribution). You do not need to do any calculations here - you just need to state whether it would be the same, higher or lower. Please explain your answer for full credit. 68.26% 95.44% 99.74% -30 -20 -10 +1g +20 +30 +40 Rate of return (%) E Focus MacBook Pro

You invest $100 in a risky asset with an expected return of 12% and a standard deviation of 15%, and a T-bill that pays 5%.   [i].      If you desire to form a portfolio with an expected return of 9%, what percentages of your money must you invest in the T-bill?   [ii].      If you desire to form a portfolio with a standard deviation of 9%, what percentages of your money must you invest in the T-bill?

Suppose that you currently have $100,000 invested in a portfolio with an expected return of 13% and a volatility of 8%. The efficient (tangent) portfolio has an expected return of 17% and a volatility of 10%. The risk-free rate of interest is 1%. Suppose that you want to keep the expected return equal to the current rate of 13%. Accordingly, the level of risk you can expect is: 1.00% 3.75% 4.75% 5.15% None of the above

You currently have $100,000 invested in a portfolio that has an expected return of 10% and a volatility of 10%. Suppose the risk-free rate is 5% , and there is another portfolio has an expected return of 24% and a volatility of 13%. a. What portfollo has a higherhigher expected return than your portfollo but with the same volatility? The portfolio should be composed of $ in the other portfolio, and $_____ in the risk-free investment (round to the nearest dollar). What is your expected return? % b. What portfolio has a lowerlower volatility than your portfollo but with the same expected return? You should invest $_____ in the other portfolio and $_______ in the risk-free investment, lowering your volitility to %.

Suppose the expected return on the tangent portfolio is 10% and its volatility is 40%.The risk-free rate is 2%.(a) What is the equation of the Capital Market Line (CML)?(b) What is the standard deviation of an efficient portfolio whose expected return of8%? How would you allocate $1,000 to achieve this position

Suppose the assumption behind that the CAPM hold. The risk free rate is 2% and the expected return market is 9% .The standard deviation of the market portfolio is 15% .AAPL has a beta of 1.4 and standard deviation of 35% .Suppose that the standard deviation of your optimal portfolio is 18% . What is its expected return?

Find the expected portfolio return and standard deviation if you were to invest 50% of your portfolio in Asset B, 50% in Asset C, with no allocation to Asset A. Compute your answers to the nearest tenth of a basis point. (See attached data file) We know that Asset                  A:      B:        C: expected return:                     1.16     1.35    1.38 expected standard deviation: 2.88     1.58    2.19

You invest 50% of your wealth in risky asset A and 50% in the risk-free asset. E(ra) is 10% and OA is 16%, while the risk- ree rate is 3%. The expected return on your portfolio is________ while the standard deviation is_________   Multiple Choice   6.50%,; 8.00%   7.90%; ,11.20%   5.80%; ,6.40%   7.20%; ,9.60%

You will have a portfolio that is only comprised of two assets. You plan to allocate 47.1% into asset A, which has an expected return of 12.1%. The remainder of your portfolio will be allocated to asset B, which has an expected return of 5.9%. What is your expected return on this two-asset portfolio? State your answer as a percentage with two decimal places (i.e., 13.21, not 0.1321).