Investments Quiz 2 - Edubirdie

University:
Massachusetts Institute of Technology
Course:
15.501/516 | Accounting
Academic year:

2023
Views:

330

Pages:

1
Author:

Lila Cox

Quiz # 7 You are consultant for a pension fund. The pension fund is allocating money and considers three institutional investors. The first is a stock investor, the second a long-term government and corporate bond investor, the third is a money market manager. In your function as the consultant you have done your homework and figured out the following track records: expected return standard deviation Stock investor 20% 30% Bond investor 12% 15% Money market manager 8% - The pension fund requires 24% return to meet its asset/liability-objectives. The guidelines do not allow borrowing, however you can sell short. You wish to construct a portfolio of only stocks and bonds with an expected return of 24% What are the appropriate portfolio proportions and the resulting standard deviations? What reduction in standard deviation could you attain if you were allowed to borrow at the risk free rate of 8%.

Related Documents

Investments Quiz 2

Investments Quiz 2 - Page 1

of 1

Recommended Documents

Ontario Gateway Case Discussion

Ontario Gateway Case Discussion

Massachusetts Institute of Technology 15.501/516 | Accounting

Lecture Note

The Balance Sheet and the Recording of Transactions

The Balance Sheet and the Recording of Transactions

Massachusetts Institute of Technology 15.501/516 | Accounting

Lecture Note

Transactions - William's Merchandize Distribution Answers

Transactions - William's Merchandize Distribution Answers

Massachusetts Institute of Technology 15.501/516 | Accounting

Answer Key

Financial Statements - the Annual Report

Financial Statements - the Annual Report

Massachusetts Institute of Technology 15.501/516 | Accounting

Lecture Note

The Classified Balance Sheet

The Classified Balance Sheet

Massachusetts Institute of Technology 15.501/516 | Accounting

Lecture Note

RFID, Visitor - Prof. Brian Subirana

RFID, Visitor - Prof. Brian Subirana

Massachusetts Institute of Technology 15.501/516 | Accounting

Answer Key

Special Seminar: Valuation - The Nuts and Bolts

Special Seminar: Valuation - The Nuts and Bolts

Massachusetts Institute of Technology 15.501/516 | Accounting

Lecture Note

Steelscreen - A Secure Portal.

Steelscreen - A Secure Portal.

Massachusetts Institute of Technology 15.501/516 | Accounting

Lecture Note

Structural Rubber v. Park Rubber (1984)

Structural Rubber v. Park Rubber (1984)

Massachusetts Institute of Technology 15.501/516 | Accounting

Lecture Note

The Radix Heap Algorithm

The Radix Heap Algorithm

Massachusetts Institute of Technology 15.501/516 | Accounting

Lecture Note

Time Uncertainty and Market Power

Time Uncertainty and Market Power

Massachusetts Institute of Technology 15.501/516 | Accounting

Lecture Note

Visitor - Arup Gupta, CEO, Tata Consultancy Services

Visitor - Arup Gupta, CEO, Tata Consultancy Services

Massachusetts Institute of Technology 15.501/516 | Accounting

Answer Key

New Documents from this Course

Intro to Financial & Managerial Accounting Set 3

Intro to Financial & Managerial Accounting Set 3

Massachusetts Institute of Technology 15.501/516 | Accounting

Answer Key

Introduction to Financial and Managerial Accountin Problem Set 2

Introduction to Financial and Managerial Accountin Problem Set 2

Massachusetts Institute of Technology 15.501/516 | Accounting

Answer Key

Intro to Financial & Managerial Accounting Set 1

Intro to Financial & Managerial Accounting Set 1

Massachusetts Institute of Technology 15.501/516 | Accounting

Answer Key

Introduction to Financial and Managerial Accountin Problem Set 1

Introduction to Financial and Managerial Accountin Problem Set 1

Massachusetts Institute of Technology 15.501/516 | Accounting

Answer Key

Midterm 2 Review Notes

Midterm 2 Review Notes

Massachusetts Institute of Technology 15.501/516 | Accounting

Lecture Note

Marketable Securities (Deferred Taxes)

Marketable Securities (Deferred Taxes)

Massachusetts Institute of Technology 15.501/516 | Accounting

Lecture Note