A fund manager at a brokerage firm

Assignment Help Finance Basics

Reference no: EM13242625

You have just taken over as a fund manager at a brokerage firm. Your assistant, Thomas, is briefing you on the current portfolio and states "We have too much of our portfolio in Alpha. We should probably move some of those funds into Gamma so we can achieve better diversification." Is he right? [Hint: Feel free to use spreadsheet statistical functions.] Here is the data on all three stocks. Assume, for convenience, that all three securities do not pay dividends. Alpha, Current Price 40; Current Weight 80%; Next Year's Price: Expansion 48, Normal 44, Recession 36; Beta, Current Price 27.50; Current Weight 20%; Next Year's Price: Expansion 27.50, Normal 26, Recession 25; Gamma, Current Price 15; Current Weight 0%; Next Year's Price: Expansion 16.50, Normal 19.50, Recession 12.
No.
Yes.
It depends.

I also need the excel forumlas

Reference no: EM13242625

Questions Cloud

What is optimal amount for the firm to spend on advertising : The Wilson Company's marketing manager has determined that the price elasticity of demand for its product equals -2.2. According to studies he carried out, the relationship between the amount spent by the firm on advertisin

What angle does the protons velocity make with b : A proton with v = 322 m/s is moving through a region in which the magnetic field is B = 2.2 T, what angle does the protons velocity make with B

Calculate the exact integration result using matlab : Calculate the exact integration result using Matlab symbolic tools and calculate the errors in calculating work done

Between 1935 and 1943-the workers progress administration : Which of the following states was most affected by population migrations during World War II? Between 1935 and 1943, the Workers Progress Administration. The 1973 Paris Peace Accords led to the

A fund manager at a brokerage firm : You have just taken over as a fund manager at a brokerage firm.

Define what is the percent-yield of h2 : What is the percent-yield of H2 In the reaction below when an equimolar mixture of CH4 and CO2 with an initial total pressure of 20.0 atm reaches equilibrium at 1200. K, at which Kp = 3.548 x 106

Calculate the value of the marginal product for each worker : Calculate the marginal product for each additional worker Each unit of output sells for $10. Calculate the value of the marginal product for each worker. Graph the firm's demand schedule.

Compute the heat supplied to maintain a constant temperature : Four kilomoles of a monatomic ideal gas are at a temperature of 300 K, Compute the heat supplied to maintain a constant temperature

Describe a dioxin-contaminated water source : A dioxin-contaminated water source contains 0.081% dioxin by mass. How much dioxin is present in 4.2 L of this water? (Assume that the density of the solution is 1.01 g/mL.)

User Account

All Pages