# Expected return standard deviation | Accounting homework help

Expected Return Standard Deviation

Lo-Risk Fund (LRF)  .10  .18
Hi-Risk Fund (HRF)  .20  .34
You know that the correlation between returns from LRF and HRF is 0.15. (Covariance is 0.00918.)

a. What is the expected return of a portfolio that is 60% LRF and 40% HRF? What is the standard deviation of this portfolio?

b. What makes a portfolio efficient? The minimum risk portfolio of LRF and HRF contains 82% LRF and 18% HRF. Is the portfolio you derived in part a. an efficient combination of the two funds? Briefly explain. (You should be able to answer this question without further calculations.)

c. Suppose Treasury Bills are also available. They return 4% and are risk-free. Create a portfolio from HRF and Treasury Bills with the same expected return as the portfolio in part a. Is this portfolio superior to the portfolio in part a.? Support your answer with appropriate analysis.

## Calculate the price of your order

550 words
We'll send you the first draft for approval by September 11, 2018 at 10:52 AM
Total price:
\$26
The price is based on these factors:
Number of pages
Urgency
Basic features
• Free title page and bibliography
• Unlimited revisions
• Plagiarism-free guarantee
• Money-back guarantee
On-demand options
• Writer’s samples
• Part-by-part delivery
• Overnight delivery
• Copies of used sources
Paper format
• 275 words per page
• 12 pt Arial/Times New Roman
• Double line spacing
• Any citation style (APA, MLA, Chicago/Turabian, Harvard)

# Our guarantees

Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

### Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

### Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

### Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.