User Account

All Pages

Calculate the standard deviation of the portfolio

Assignment Help Finance Basics
Reference no: EM132697996

Consider the following information:

State of Economy Probability of State of Economy Rate of Return if the StateOccurs

Omega Ltd Delta Ltd

Boom 0.7 8% 2%

Bust 0.3 4% 15%

(a) Calculate the expected return on a portfolio consisting of 65 percent investment in Omega and 35 percent in Delta.

(b) Calculate the standard deviation of the portfolio.

Reference no: EM132697996

Questions Cloud

How much goodwill to reported in consolidated statement : How much is the goodwill/(income for acquisition) to be reported in the consolidated statement of financial position of NOBITA Corporation
Define a research question and research area : Identify a problem that requires collaboration with an industry partner and/or collection of primary data you MUST seek approval from your tutor
Find invest in the risk free asset : You want your portfolio beta to be 1.1. How much should you invest in the risk free asset?
What is the firm market capitalisation of equity : An analyst forecasts a firm's nominal Equity Free Cash Flows to be:$10 million next year (t=1);
Calculate the standard deviation of the portfolio : State of Economy Probability of State of Economy Rate of Return if the StateOccurs
What is current yield : A bond currently sells for $850. It has an 8-year maturity, an annual coupon of $80, and a par value of $1,000.
New expected future capital return per annum : Pay a dividend of $9 next year (t=1) which is expected to grow by 2.5% pa every year after that forever. Dividend growth rate is the stock's capital return.
Calculate company weighted average cost of capital : UoA Ltd has designed a new product and conducted a market survey costing $500,000 to assess its viability. The survey has determined that the new product
Compute balances to presented in the consolidated statement : Compute for the following balances to be presented in the consolidated statement of financial position at the date of business combination

Reviews

Write a Review

Finance Basics Questions & Answers

  Financial reporting and analysis

Finance is about Gunns Ltd, a company in dealing with forestry products in Australia. The company has also been listed in Australian Stock Exchange. As many companies producing forestry products, even Gunns Ltd is facing various problems. Due to the ..

  A report on financial accounting

This report is specific for a core understanding for Financial Accounting and its relevant factors.

  Describe the types of financial ratios

Describe the types of financial ratios and other financial performance measures that are used during venture's successful life cycle.

  Differences between sole proprietorship and corporation

Briefly describe the major differences between a sole proprietorship and a corporation

  Prepare a cash budget statement

Calculate the expected value of the apartment in 20 years' time. What is the mortgage loan repayment at the beginning of each month

  What are the implied interest rates

What are the implied interest rates in Europe and the U.S.?

  State pricing theory and no-arbitrage pricing theory

State pricing theory and no-arbitrage pricing theory

  Small business administration

Identify the likely stage for each venture and describe the type of financing each venture is likely to be seeking and identify potential sources for that financing.

  Effect of financial leverage

The Effect of Financial Leverage and working capital management

  Evaluate the basis for the payment to the lender

Evaluate the basis for the payment to the lender and basis for the payment to the company-counterparty.

  Importance of opps, ipps, mpfs and dmepos

Research and discuss the differences and importance of : OPPS, IPPS, MPFS and DMEPOS.

  Time value of money

Time Value of Money project

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