About the treasury bonds, Treasury bonds. The S&P 500 has

About the treasury bonds

Assignment Help Financial Management

Reference no: EM131889868

Treasury bonds. The S&P 500 has an expected return of 14 percent and a standard deviation of 16 percent. The Treasury bonds have an expected return of 9 percent and a standard deviation of 8 percent. The correlation between the S&P 500 and the bonds is 0.35. All figures are stated on an annual basis.

a. Find the VAR for one year at a probability of 0.05. Identify and use the most appropriate method given the information you have.

b. Using the information you obtained in part a, find the VAR for one day.

Reference no: EM131889868

Questions Cloud

Savings account-how much money would be in your account : How much money would be in your account at you birthday at age 63 when you finally cash out?

Shares will the company repurchase as result of debt issue : How many shares will the company repurchase as a result of the debt issue? How many shares of common stock will remain after the repurchase?

What is the value of master data to an organization : There are many reasons why organizations are addressing a need for MDM now, even though they may not have paid attention to it in the past.

Discuss the primary evidence that would satisfy the learners : Summarize the purposes and process involved in the evaluation of a training program. Discuss the primary evidence that you think.

About the treasury bonds : Treasury bonds. The S&P 500 has an expected return of 14 percent and a standard deviation of 16 percent.

Describe objective and metrics to evaluate performance : For each framework in the discussion, describe the framework, the commonly understood name it is referred to in supply chain circles.

What was the capital gains yield and dividend yield : Compute the percentage total return. What was the dividend yield? What was the capital gains yield?

Explain the different generic strategies : Summarize and expand on Business-Level Strategy, and explain the different generic strategies. Most importantly, explain which of the generic strategies.

What would her monthly payment be : Oprah Winfrey has closed on a 42-acre estate near Santa Barbara, what would her monthly payment be?

User Account

All Pages