Problems For Assignment On FIN642

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Problems for Assignment

Page # Problem/Question # Page # Problem/Question #


33 2, 5, 6, 8 107 5, 6, 7
56 4, 8 123 2, 4, 6
71 4, 6, 8 141 4, 5, 7
92 3, 5, 6 154 4, 6, 7, 8, 10

27. You are considering two assets with the following characteristics:
E(R1) =0.15 σ1 = 0.10 W1= 0.45
E(R2) = 0.20 σ2 = 0.23 W2= 0.55
Compute the mean and standard deviation of two portfolios if r1,2 = -0.60
28. Consider asset X as risk free where 35% of total fund is allocated and asset Y risky where
remaining fund is allocated. The rate of return of asset X is 7% and of asset Y is 13% with standard
deviation of 8%. What is the rate of rate and level of risk of this portfolio?

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