User Account

All Pages

Calculate weighted average beta of stocks within portfolio

Assignment Help Portfolio Management
Reference no: EM13202403

To illustrate the development of a portfolio, construct a portfolio of investment securities by selecting these 5 Fortune 500 stocks and these 3 AAA rated corporate bonds bellow. The goal is to diversify the portfolio as much as possible given the constraints on the number of securities used in this example. The criteria to be used include the investor demographics, asset allocation strategy and risk tolerance provided to each student individually by the instructor in the first week. Please list the characteristics provided along with your answer to the following:

1. Calculate the weighted average beta of the stocks within the portfolio.

2. Determine if and how the portfolio construction would change by using an alternative asset allocation strategy. PS: please used word instead of excel A. Fortune 500 Companies (Company Overview and beta Calculation)

1. Bank of America

2. Exxon Mobil

3. Chevron

4. General Electric

5. ConocoPhillips

B. AAA Rated Corporate Bonds (Company overview and beta Calculation)

1. Johnson & Johnson

2. KFW International

3. International BK for Recon & Dev

2. Determine proper portfolio construction

A. Asset allocation strategy #1,2,3

1. 2012 Recovery and normal inflation.

2. 2012 Double dip lengthy recession

3. 2012 Bull market continues

3. Its impact in a change of marital status

B. Tax implications 1. Married with children 2. Single with children 4. Conclusion

Reference no: EM13202403

Questions Cloud

Define what is meant by interest rate risk : Define what is meant by interest rate risk. Assume you are the manager of a $100 million portfolio of corporate bonds and you believe interest rates will fall. What adjustments should you make to your portfolio based on your beliefs?
How much simple interest in each : you invested a total of $10,000 at 4.5% and 5.5% simple interest. During one year, the two accounts earned you a total of $508.75. How much simple interest in each?
Estimate the maximum error in the calculated surface area : The circumference of a sphere was measured to be 90000 cm with a possible error of 050000 cm. Use linear approximation to estimate the maximum error in the calculated surface area.
Find and interpret the c-intercept for the line : Dental Services. The national cost C in billions of dollars for dental services can be modeled by the linear equation C = 2.85n + 30.52. Where n is the number of years since 1990 (HealthCare Financing Administration).
Calculate weighted average beta of stocks within portfolio : Determine if and how the portfolio construction would change by using an alternative asset allocation strategy.
Find the speed of each train : The speed of a passenger train 20 mph faster than the speed of a freight train. The passenger train travels 290 miles in the same time it takes the freight train to travel 190 miles. Find the speed of each train. Passenger train?
How many feet does the car travel before coming : a car traveling at 40ft per second decelerates at a constant 8ft per second squared. How many feet does the car travel before coming to a complete stop?
Estimate the maximum error in the calculated surface area : The circumference of a sphere was measured to be 83000 cm with a possible error of 050000 cm. Use linear approximation to estimate the maximum error in the calculated surface area.
Find the largest possible volume of the box : If 10,800 cm2 of material is available to make a box with a square base and an open top, find the largest possible volume of the box.

Reviews

Write a Review

Portfolio Management Questions & Answers

  Portfolio analysis

The stock with the lowest beta (0.76) is Apple Inc. stock. The stock with the highest beta (3.29) is Facebook Inc. stock. Beta for Apple Inc. stock is less that 1, it tells us that stock price is less volatile and risky than mark..

  Provide investment portfolio advice

Provide investment portfolio advice and management to a client.

  Evaluate total number of shares

EBV proposes to structure the investment as 5m shares of CP with FV of $5m, one-to one conversion to common, and no dividends. Total Valuation Estimated from Newco.

  Role of the imf and world bank

Economic and territorial logic of empire are not always aligned. Explain his argument in light of the role of the IMF and World Bank as forms of neo imperialism.

  Prepare a portfolio of stocks

Prepare a portfolio of stocks

  Which critically examines the benefits and risks to company

Which critically examines the benefits and risks to a company, of incorporating corporate debt into a portfolio of equity and debt.

  Compute the variance-covariance matrix

Compute the sample mean, variance, and standard deviation of these shares and compute the variance-covariance matrix V and Plot the daily share prices and daily returns for each individual asset.

  Net nominal rate of interest and net real rate of interest

What bank portfolio can guarantee the rate of return 1 to all type 1 people and the rate of return 1.2 to all type 2 people? How many goods are placed in storage? In capital?

  Right issue to improve financial status

If you are the CEO of a British company that now faces the loss of a lucrative contract in Malaysia because of the dispute. What action should you take and How do you think British government should respond to the Malaysian action?

  Calculate the cost of reinvested profits

Calculate the cost of reinvested profits and the cost of new common shares using the constant-growth DVM - Cost of reinvested profits versus new common shares-DVM

  Calculate the after-tax cost of debt

Cost of debt For each of the following bonds, calculate the after-tax cost of debt. Assume the coupons are paid semi-annually, that the tax rate is 40 percent, and that we are dealing with $1,000 of par value.

  Calculate the overall cost of capital for cartwell products

Calculate the overall cost of capital for Cartwell Products. Which projects should the firm select? Does your answer differ from your answer topart d? If so, explain why.

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