1. Suppose that you have $1 million and the following two opportunities from which to construct a portfolio: a. Risk-free asset earning 12% per year. b. Risky asset with expected return 30% per year and standard deviation of 40%. If you construct a portfolio with a standard deviation of 30%‚ what is its expected rate of return? Ans: P = 30 = yy y = 0.75 E(rP) = 12 + 0.75(30 12) = 25.5% 2. Suppose that there are many stocks in the security market and that the characteristics of Stocks
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Portfolio construction models The project that we have done based on the Markowitz and Sharp methodologies that allow investors to build an efficient portfolio. An efficient portfolio is defined as the portfolio that maximizes the expected return for a given amount of risk (standard deviation)‚ or the portfolio that minimizes the risk subject to a given expected return. Markowitz method determines the asset allocation that produces the highest expected return for each unit of risk. The calculation
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feelings that might be occurring in the mind of the customers. These methods encountered some ethical objections as there was concern about companies being unethical in their use of neuroscience to sell more of their products. It is mentioned in the case study that a group called Commercial Alert has raised objections regarding this kind of research. “Neuromarketing is a controversial new field of marketing which uses medical technologies such as functional Magnetic Resonance Imaging (fMRI) -- not
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Business Writing Portfolio Business Writing Portfolio Part I: Business Writing Steps [pic] Part II: Portfolio 9/6/2010 The Retail Store 123 Any St. Anywhere‚ TX 76013 Dear The Retail Store Mangement Team The board of directors for The Retail Store has determined that scaling back the hours of our retail operations. Beginning next month‚ all stores will be closed on Sundays‚ and will open one hour later and close one hour earlier Monday through Saturday. All
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The Hunted by Alex Shearer is a book for our times. Discuss The Hunted by Alex Shearer is a very appealing book. The plot maybe unique but that just makes the book more exciting. In this book most people have sacrificed the joy of having children‚ their fertility for the dream of eternal youth. Tarrin is a very special boy. He is rare and unique. He is what you called a real boy in this book because he has not used anti-ageing pills or the PP implant. He is a naturally young child. His guardian
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Alex Standall When we first met Alex standall he is a new kind along with Hannah Baker and Jessica Davis. They all bond over coming to a new town‚ switching schools and seeing each other at Monet’s‚ a little cafe. At Monet’s all three become tentative friends with a code word olly-olly-oxen-free which means someone had an exhausting day. Alex is sneaky and cruel because not only does he ruin his friendship with Hannah by placing her name on a “Who’s Hot/Who’s Not” list‚ he also causes Jessica Davis
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Loan Portfolio Management Introduction Background: L ending is the principal business activity for most commercial banks. The loan portfolio is typically the largest asset and the predominate source of revenue. As such‚ it is one of the greatest sources of risk to a bank’s safety and soundness. Whether due to lax credit standards‚ poor portfolio risk management‚ or weakness in the economy‚ loan portfolio problems have historically been the major cause of bank losses and failures. Effective
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Final Portfolio Alysson P. Guerrero ENC1101 Professor Emer Sanchez October 14‚ 2012 Self-Evaluation Focusing in self- evaluation to improve the learning process‚ help me to set goals and be aware of my own mistakes. When the English Composition course started‚ I wanted to be able to express my thoughts and my ideas in an effective way. The process of writing for non-native speakers of English is kind of difficult. For me‚ the American style of writing is very narrow‚ and my style is
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explain the Project Portfolio Management (PPM)‚ the reasoning behind it as a set of processes and methodologies and how these build a group of singular projects into a stack or tier that can be holistically graded‚ how these processes can drive IT to become closely modelled on and aligned with business strategy. It seeks to point out successful methodologies for PPM implementation and some of the issues that can arise. The basis of PPM Project management and by extension portfolio management are curious
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The Portfolio Investment Report 1. Introduction The paper shows the general situation about portfolio investment between all February‚ which will presents the portfolio evaluation and portfolio investment decision. 2. Portfolio Evaluation During the months‚ four stocks‚ one mutual funds and one bonds were added into the investment portfolio‚ which stock is Rolls-Royce Holdings PLC‚ BT Group PLC‚ Centrica PLC and Xstrata PLC‚ mutual funds is YAFIX‚ and bonds is Goodyear Tire& Rubber Co.
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