Top Posters
Since Sunday
a
5
k
5
c
5
B
5
l
5
C
4
s
4
a
4
t
4
i
4
r
4
r
4
New Topic  
nitanikollaj nitanikollaj
wrote...
Posts: 114
Rep: 0 0
A month ago
The expected return of Security A is 12% with a standard deviation of 15%. The expected return of Security B is 9% with a standard deviation of 10%. Securities A and B have a correlation of 0.4. The market return is 11% with a standard deviation of 13% and the risk-free rate is 4%. Which one of the following is not an efficient portfolio, as determined by the lowest Sharpe ratio?

▸ 41% in A and 59% B is efficient.

▸ 100% invested in A is efficient.

▸ 100% invested in B is efficient.

▸ 59% in A and 41% B is efficient.
Textbook 
Corporate Finance

Corporate Finance


Edition: 5th
Author:
Read 37 times
1 Reply
Replies
Answer verified by a subject expert
xuelixueli
wrote...
Posts: 123
Rep: 0 0
A month ago
Sign in or Sign up in seconds to unlock everything for free
More solutions for this book are available here
1

Related Topics

nitanikollaj Author
wrote...

A month ago
Thank you, thank you, thank you!
wrote...

Yesterday
This helped my grade so much Perfect
wrote...

2 hours ago
Thanks for your help!!
New Topic      
Explore
Post your homework questions and get free online help from our incredible volunteers
  895 People Browsing
Related Images
  
 200
  
 710
  
 328
Your Opinion
Who will win the 2024 president election?
Votes: 3
Closes: November 4

Previous poll results: Who's your favorite biologist?