Bingo Bank has a loan portfolio that worth $20,000. Using the below information, calculate the following (round to three decimal places):   Loan I Loan II Expected return 30% 40% Standard deviation 17% 30% Weight 40% 60% Covariance -0.05   A. Expected return:   B. Variance:

Compute the expected rate of return on investment i given the followinginformation: Rf = 8%; E(RM) = 14%; βi = 1.0.b. Recalculate the required rate of return assuming βi is 1.8.25. a. Compute the expected rate of return on investment i given the followinginformation: the market risk premium is 5%; Rf = 6%; βi = 1.2.b. Compute E(RM)

Compute the expected rate of return on investment i given the followinginformation: Rf = 8%; E(RM) = 14%; βi = 1.0.b. Recalculate the required rate of return assuming βi is 1.8.

You have data on the following assets: asset Expected return Standard DeviationA 15.0% 21.0%B 15.5% 20.2%C 18.0% 25.0% Calculate the coefficient of variation for each of the assets. Which one is the best investment option?

Suppose that the returns on an investment are normally distributed with an expected return of 16% and standard deviation of 3%. What is the likelihood of receiving a return that is equal to or less than 19%? (Hint: the area under a curve for 1 std dev is 34.13%, 2 std dev is 47.73% and 3 std dev is 49.87%.).

The following table provides information relating to Omega Ltd, as well as the market portfolio. The risk-free rate of return is 3.4%   . Asset Excess Return Variance Beta   Omega 12% 0.021904 1.4   M 8.1% 0.010201 1   What is Omega's M2 value?   a. 7.41%   b. 11.59%   c. 8.99%   d. 9.27%   What is Omega's Sharpe Ratio?   a. 0.061   b. 0.811   c. 0.086   d. 0.581   please explain the calculation step by step

Calculate the (a) expected return, (b) standard deviation, and (c) coefficient of variation for an investment with the following probability distribution: Probability      Payoff 0.45                  32.0% 0.35                   -4.0% 0.20                  -20.0%

III. 1. The average variance of financial assets on a market is 0.4% and the average covariance between assets is 0.1%. Compute the variance of a portfolio composed of a. 5 assets: b. 100 assets. a. V(Rpf)=.. b. V(Rpf)=.. 2. On a market at equilibrium the effcient frontier has the following equation: E(Rp)=4%+1.2 opf The standard deviation of the market portfolio equals 5%. a. The expected return on a portfolio A with a beta of 1,2 equals .%. b. How much of the total risk of portfolio B is explained by the market if the correlation between A and B equals 0,5? Answer: R? =. %

Consider the information below, compute the expected return, variance, and standard deviation. Show the solution.   Probability  Return of Assets 25% .30 25% .050 25% .100 25% .280

Possible returns and their probabilities for an asset is given in the table below. The expected return is 30.25%. Calculate the standard deviation of the asset's return. Probability 0.40 0.45 0.15 13.92% O 17.84 % 18.55% O 19.09% 16.59% Return 0.52 0.17 0.12