Assets Portfolio - Expected Return

Related BrainMass Solutions

• Expected Return and Standard Deviation of Portfolio Caclulations

  If the correlation between the two assets is zero, create a portfolio with a 19% return and compute the portfolio standard deviation. g. If the return of the two assets is zero, find the minimum variance portfolio and its expected return.

• Security Expected Return and Standard Deviation

  ^2_1 + w^2_2 * omega^2_2 + 2*w_1*w_2*omega_1*omega)2*p_12 Where E(R_p) = expected return of the portfolio omega = variance of the portfolio w_1, w_2 = weights of the two assets in the portfolio.

• Portfolio Weights and Expected Returns

  557296 Portfolio Weights and Expected Returns A stock has a beta of 1.25 and an expected return of 14%. A risk free asset currently earns 2.1%. 1) What is the expected return on a portfolio that is equally invested in two assets?

• Explain how forming a portfolio may result in reduction in risk. what is the necessary condition for this risk reduction to occur?

  Since this rate is 6%, then we get that the expected return from the market portfolio is: 8.6 + 6 = 14.6% Now, the formula for the expected return of a portfolio whose components are assets A and B is: wA*rA + wB*rB where wA and wB are the

• Expected Return and Risk-free Weight

  What is the expected return on a portfolio that is equally invested in the two assets? (Round your answer to 2 decimal places. (e.g., 32.16)) Expected return % b.

• Assets: Minimum Variance Portfolio; Yield Expected Return

  Assets are explained. Minimum variance portfolio and yield expected return is discussed.

• Rate of Return-Investment Theory

  Using the above assets from the model portfolio and their associated values, calculate the following: -The rate of return of the portfolio -The expected rate of return on the portfolio -Discuss your perception of the two returns and what is driving

• CAPM (Capital Asset Pricing Model)

  If a portfolio of the two assets has an expected return of 11 percent, its beta is ________ . (Round answer to 6 decimal places.) d.

• Financial Services questions: Relative Valuation, Analyzing a Portfolio, CAPM and more...

  What is the expected return on a portfolio that is equally invested in the two assets? b. If a portfolio of the two assets has a beat of .5, what are the portfolio weights? c.