User Account

All Pages

Calculate the portfolio VaR

Assignment Help Accounting Basics
Reference no: EM132691803

Question - The company has invested $400000000 in stocks and $600000000 in bonds. Stocks has a standard deviation of 7% while bonds have 10%. The correlation between stocks and bonds is 0.10. Calculate the portfolio VaR (DEAR) at 99% given mean of 10%.

Reference no: EM132691803

Questions Cloud

Quantitative methodology vs qualitative methodology : Quantitative data can be measured and documented with numbers. Discuss Quantitative Methodology. Discuss Qualitative Methodology.
Calculate company Z return on equity : Company XAs of 31 December Ending shareholders' equity £20,000,000Tax rate 30%Dividends £0.00Net income £750,000. Calculate company Z return on equity
Would accept reject or be indifferent with the project : A firm is considering a project with an initial investment of $3,000,000. Using Net Present Value, would you accept, reject or be indifferent with the project
Find what the average accounting rate of return is : What the average accounting rate of return (AAR) is? The initial investment will have a useful life of 4 years and no salvage value.
Calculate the portfolio VaR : Stocks has a standard deviation of 7% while bonds have 10%. The correlation between stocks and bonds is 0.10. Calculate the portfolio VaR
What do mean by ideal economic income and wealth : What do we mean by income Ex ante and income Ex post and how are they used? What do mean by ideal economic income and wealth
Determine the present value of this investment : An investment will pay $15,000 at the end of the first year, $37,000 at the end of the second year, Determine the present value of this investment
Calculate the selling price per unit for yorkstar : Yorkstar plans for a profit of $40,000. Variable cost is $8 per unit and total fixed costs are $100,000. Calculate the selling price per unit.
What is the cost or benefit of purchasing the component : Sunny Enterprises makes a component that is used in the assembly of radios, What is the cost or benefit of purchasing the component from Razor Edge?

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

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