I need to get an expected return of 14 using vangaurd

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I need to get an expected return of 14% using Vangaurd which I expect to only earn 12%. To get a higher expected return, I must borrow. w w w w r w r wE r E f s p = = - + = - + = 0 . 3 01 . 03 . 11 . 0 ) 1 ( 12 . 0 14 . 0 ) 1 ( ] [ ] [
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Different Borrowing and Lending Rates 9 What is the total risk of this portfolio? Use stat rule 2: σ p =3*0.16=0.48>0.2625 Again, your client is better of sticking with her Mosaic fund.
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Different Borrowing and Lending Rates 10 What do CAL line look like when borrowing and lending rates differ? See Excel Spreadsheet
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Security Markets 3.1-3.3
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Classifying Markets General Types of Markets Direct Search Brokered Dealer Auction Financial Markets Primary Secondary
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Role of Investment Banks in Primary Markets Advise the firm regarding the terms on which it should attempt to sell the securities Preliminary registration statement must be filed by SEC red herring once approved: prospectus When prospectus is approved, price is announced. Banks buys securities from the issuing company at public offering price less a spread and then resell to public.
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Road Shows
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  • Fall '10
  • BrianBoyer
  • Interest, different borrowing, Financial Markets

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