Reference no: EM132713779
You are an active investor in the securities market and you have established an investment portfolio of two stock A and B five years ago.
|
|
A
|
B
|
|
Expected return
|
12.5%
|
18.5%
|
|
Standard Deviation of return
|
15%
|
20%
|
|
Correlation of coefficient (p)
|
0.4
|
Problem a) If your portfolio has provided you with returns of 9.7%, -6.2%, 12.1%, 11.5% and 13.3% over the past five years, respectively. Calculate the geometric average return of the portfolio for this period?
Problem b) Assume that expected return of the stock A in your portfolio is 14.6%. The risk premium on the stocks of the same industry are 5.8%, the risk-free rate of return is 5.9% and the inflation rate was 2.7. Calculate beta of this stock using Capital Asset Pricing Model (CAPM) ?
Problem c) Assume that you bought 200 stock B in your portfolio for total investment of $1200, now the market price of the stock is $75, the dividend paid for this stock is $2 each year. How much is the capital gain of this stock ?
Problem d) Assume that the following data available for the portfolio, calculate the expected return, variance and standard deviation of the portfolio given stock A accounts for 45% and stock B accounts for 55% of your portfolio?
|
How would you describe the csr in india
: How would you describe the CSR in India? What role has the civil society played in the Indian business system?
|
|
Complex legal issues of ecommerce
: You have been hired by XYZ Technologies Inc., located in Lynchburg, VA. XYZ Technologies Inc., is a software development firm that designs and sells its product
|
|
Find the arr with annual depreciation
: Find the 1.) PBP, 2.) ARR, with annual depreciation of 14,000, 3.) NPV, and 4.) IRR. 5.) Should the equipment be bought? Explain.
|
|
Does employees social media presence matters to managers
: Does employees social media presence matters to managers? What are the advantages and disadvantages of it?
|
|
Calculate the expected return and variance
: Calculate the expected return, variance and standard deviation of the portfolio given stock A accounts for 45% and stock B accounts for 55% of your portfolio?
|
|
Suggest three performance measures
: Duncan's Pizzas is a chain of pizza stores. Pizzas are made fresh in-store, and then delivered to customers by a fleet of drivers.
|
|
Accuracy-reliability and timeliness of data
: What specific examples would you give to show how inaccurate and unreliable data could impact healthcare?
|
|
Leadership impact on organizational performance
: Seven peer reviewed Literature review on Leadership Impact on Organizational Performance.
|
|
Discuss the three policy tools that governments
: Define and discuss the three policy tools that governments (in general) can adopt to limit single-use plastics. Give real examples to support your arguments
|