User Account

All Pages

Compute the expected annualized sharpe ratio of account

Assignment Help Finance Basics
Reference no: EM132666831

-You are a successful proprietary day trader at a trading shop where you trade on behalf of other investors. At the beginning of everyday, you receive $100K to trade. You estimate that you earn a daily profit that is normally distributed with a mean of $5K and a standard deviation of $50K (the standard normal table is attached to the end of this document).

-How much capital in addition to the $100,000 should the firm deposit to your account to be 99.9% sure that your account will not fall below zero in a given day.

-What is the 95% confidence interval for your total dollar trading profits in one year?

-Compute the expected annualized Sharpe ratio of your account (the risk free rate is zero).

Reference no: EM132666831

Questions Cloud

Find the bond equivalent and effective annual yield : Find the bond equivalent and effective annual yield to maturity of the bond for the following bond prices.
Discuss about the strengths and weaknesses of the mission : Write a 800-1000 word paper (body content length) based on researched artifacts from three companies in the same sector of private or non-profit industry.
How manufacturing organizations use activity-based costing : How manufacturing organizations use activity-based costing to increase profitability. A minimum of ten scholarly reviewed sources is required.
Analyze executive buy-in of organization protective measure : Analyze the effectiveness and executive buy-in of organizational protective measures [organizational back-up policies, access control, data recovery systems]
Compute the expected annualized sharpe ratio of account : You are a successful proprietary day trader at a trading shop where you trade on behalf of other investors. At the beginning of everyday, you receive $100K to t
Define unethical activities : Evaluate the components and capabilities of information systems (ISs) pertaining to trust. how various ISs have failed to detect unethical activities.
How do find four different products of product life cycle : How do find four different products that are in the four different phases of the product life cycle. Give opinions on the product in the market decline phase
Operational efficiency and strategic vision : You are starting a new company and want to ensure organizational success through operational efficiency and strategic vision.
You to better understand information security : Discuss why this class is important (or not) to a soon-to-be security practitioner. how did this information help you to better understand information security.

Reviews

Write a Review

Finance Basics Questions & Answers

  Medicaid in the current congressional budget

Research the proposed changes to Medicare & Medicaid in the current Congressional budget. What are the overall trends?

  Routine planning and strategic planning

As the newly hired manager of the corporation strategic planning department, you plan to hold an initial meeting with your new team of strategic planners to make sure that they truly recognize the differences between routine planning and strategic..

  Dyl incs bonds currently sell for 1180 and have a par

dyl incs bonds currently sell for 1180 and have a par value of 1000. they pay a 65 annual coupon and have a 15-year

  What is its role in the local investments markets

Identify the principal financial institution in Puerto Rico. • what is its role in the local investments markets?

  What is marianne net worth

Her credit card has a balance of $3,400 and she has an unpaid medical bill of $1,890. What is Marianne's net worth

  A friend has decided to start a new business and has asked

a friend has decided to start a new business and has asked you to assist him. his primary concern is what type of

  Under what circumstances would a companys stock trade

Under what circumstances would a company's stock trade for less than the book value of its equity?

  How expensive of a dream car

Given the graduate's plans, how expensive of a "dream car" will he expect to be able to purchase in four years?

  What is the amount of the annual interest tax shield

What is the amount of the annual interest tax shield if the tax rate is 34%?

  Explain the dividend growth model in detail

Delso Company's stock has a price of $53 and the firm expects to issue a dividend of 0.77 next year (at t = 1). It has a beta of 1.9, the risk-free rate.

  The expected return for each companys stock is 87 percent

red inc. yellow corp. and blue company each will pay a dividend of 1.85 per share next year. the expected annual growth

  Why is the internal revenue service concerned

Why is the Internal Revenue Service concerned with how partnership agreements in real estate are structured?- What is the main difference between the way a partnership is taxed versus the way a corporation is taxed?

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