Business, 13.03.2021 03:20 cdradlet2001
An investor can invest in 2 assets: a government T-bill with a certain return of 0.03, and the index of all stocks in the S&P 500 (an asset called SPY). The SPY asset has the following properties: E(r) = 0.08; volatility = 0.2 What is the Sharpe ratio of the SPY asset? 1.33 Let’s say the investor sets up their portfolio such that 40% is invested in SPY, and 60% is invested in the risk-free government debt. What is the expected return of the portfolio? 5 % (answer in units of %) What is the volatility of a portfolio? 8 % (answer in units of %) What is the Sharpe ratio of the portfolio? 25 Let’s say the investor had a utility function described by U = E(r) - 1/2*A*V^2, where A is the investor’s risk-aversion coefficient, and V is the volatility of the investor’s portfolio returns. If A = 3, would the investor prefer a) the initial setup with 40% invested in SPY, or b) 60% invested in SPY, and 40% invested in the risk-free asset instead? (please write one of the following: a b ) b
Answers: 3
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In risk management, what does risk control include? a. risk identification b. risk analysis c. risk prioritization d. risk management planning e. risk elimination need this answer now : (
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Business, 22.06.2019 11:00
You decide to invest in a portfolio consisting of 25 percent stock a, 25 percent stock b, and the remainder in stock c. based on the following information, what is the expected return of your portfolio? state of economy probability of state return if state occurs of economy stock a stock b stock c recession .16 - 16.4 % - 2.7 % - 21.6 % normal .55 12.6 % 7.3 % 15.9 % boom .29 26.2 % 14.6 % 30.5 %
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Business, 22.06.2019 21:20
Which of the following best describes vertical integration? a. produce goods or services previously purchasedb. develop the ability to produce products that complement the original productc. develop the ability to produce the specified good more efficiently than befored. build long term partnerships with a few supplierse. sell products to a supplier or a distributor
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An investor can invest in 2 assets: a government T-bill with a certain return of 0.03, and the index...
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