Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you are a provider of portfolio insurance and are

You are a provider of portfolio insurance and are estabishing a 4 -year program. The...

70.2K

Verified Solution

Question

Finance

image
You are a provider of portfolio insurance and are estabishing a 4 -year program. The portfolio you manage is worth $105 mllion, and you hope to provide a minimum return of 0%. The equity portfolio has a standard deviation of 24% per year, and T-bills pay 3% per yeat. Assume that the portholio pays no dividends o-1. How much should be placed in bills? (Enter your answer in malions rounded to 2 decimal places.) 0.2. How much in equity? (Enter your answer in millions rounded to 2 decimal places.) b-1. What is the deita if the new portfolio falls by 6% on the fint day of trading? (Negative value shouid be indiceted by ominus sign. Enter your answer in millions rounded to 4 decimal ploces)

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Zin AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Q

Today, you sold 1 share of Litchfield Design stock. The percentage return over the past quarter...

Finance
Q

A block with mass 2 kg is attached to an ideal massless spring and undergoes simple...

Physics
Q

A helicopter lifts a 75.0 kg astronaut 14.2 m vertically from the ocean by means of...

Physics
Q

Two identical balls A B each of mass 2 kg radius R are suspended vertically...

Physics
Q

The science club at a large middle school has 25 members The members want to...

Basic Math
Q

Q using the Discriminant of the Quadratic equation How many real solutions from the Equation...

Algebra
Q

How do the graphs below compare? Choose all that apply.1f(x) =g(x)=Select one or more:a.-5Xe.b.c.d. shifted...

Algebra
Q

Downtown Market purchased inventory for $4,600 and also paid a $340 freight bill. Downtown Market...

Accounting
Q

Feeders Plus makes backyard birdfeeders. The company sells the birdfeeders to home improvement stores for...

Accounting
Q

Listed below are selected transactions of Concord Department Store for the current year ending December...

Accounting
Q

Tax systems are crucial to the economic performance of a country. A flawed tax system...

Accounting
Q

18. Ms. Smith has two grandchildren, Adam and Evelyn. Adam will be enrolling in college...

Finance