About the degree of risk aversion of the average investor

Assignment Help Financial Management
Reference no: EM131548932

A respected analyst forecasts that the return of the S&P500 index portfolio over rthe coming year will be 10%. The one year T-Bill rate is 5%. Examination of recent returns of the S&P500 index suggests that the standard deviation of returns will be 18%. What does this information suggest about the degree of risk aversion of the average investor. Assuming that the average portfolio resembles the S&P? A)A=2.05 B)A=3.09 C)A=3.8 D) A=5 E) Non of the above

Reference no: EM131548932

Questions Cloud

How many units were produced : The direct materials quantity variance was $750 unfavorable and the direct materials price variance was $3,000 favorable. How many units were produced?
Will she reach her goal of being able to spend : Will she reach her goal of being able to spend $250,000 during retirement?
Estimate of the present value of the FFCFs : what is your estimate of the present value of the FFCFs (and hence the firm)?
About how much is the loan balance on the car today : He decided to buy a truck and sell his car. About how much is the loan balance on the car today?
About the degree of risk aversion of the average investor : What does this information suggest about the degree of risk aversion of the average investor.
What is the standard deviation of these returns : A stock had returns of 6 percent, -22 percent, 18percent, 12 percent, and -2 percent over the past five years. What is the standard deviation of these returns?
Explain logic for price increase from starbuck perspective : From the case in 2004, explain the logic for a price increase from Starbuck's perspective.
Is amount that is portable adjusted for inflation : Is the amount that is portable adjusted for inflation?
Reaches the manufacturing and marketing stage : A venture capitalist has offered to finance the development of this product until it reaches the manufacturing and marketing stage.

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd