Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
You have excess cash from your year-end bonus and want to invest in the US equity market. You have the option of investing in 1, 2, 3, 4 or all of the investments options listed below. Develop a rational for an investment strategy. Bring into the discuss such concepts as the Efficient Market Hypothesis, random walk, abnormal returns, market anomalies, behavioral bias, risk factors, factor exposures, liquidity issues etc. Bring as many investment concepts into your rational for constructing a portfolio. Consider the four US equity mutual funds. The first three are large capitalization focused funds, the fourth is a small capitalization fund, and the fifth is the S&P 500 index (ETF) portfolio that perfectly tracks the benchmark. Each fund has an expense ratio of .75%; the benchmark (S&P 500) can be purchase for .05%. The following returns are net of fees.
1 year return Last 3 year return last 5 year return last 10 year return
Fund 1: 14.8 8.5 13.8 7.4
Fund 2: 10.8 7.7 15.1 8.5
Fund3: 14.3 8.1 14.7 6.9
Fund 4: 18.3 5.1 9.2 9.8
S&P 500 12.0 8.9 14.7 7.0
Analysis of the Investment, To prepare for this Individual Assignment: Review the Anthony's Orchard case study in the unit resources.
Sensitivity study is a technique in which key variables are changed one at a time. Scenario study is a technique in which “bad” and “good” sets of financial circumstances are compared with a most likely situation. Monte Carlo Simulation is a techniqu..
What is the present value of a security that will pay $15,000 in 20 years if securities of equal risk pay 5.3% annually? Round your answer to the nearest cent.
You have $132,000 to invest in a portfolio containing Stock X, Stock Y, and a risk-free asset. You must invest all of your money. Your goal is to create a portfolio that has an expected return of 15 percent and that has only 70 percent of the risk of..
A 5-year $100 annuity due will have a higher present value than similar ordinary annuity. A 15-year, $100,000 mortgage will have larger monthly payments than an otherwise similar 30-year mortgage. An investment's nominal interest rate will always be ..
Assuming that interest rates cannot be negative, what is the arbitrage opportunity if the three-month LIBOR rate is 0.1% per year with continuous compounding.
You hold a portfolio composed of 20% security A and 80?% security B. If A has an expected return of 10?% and B has an expected return of 15?%, what is the expected return from your portfolio? The expected return from your portfolio is?
Assume that interest rate parity holds. In the spot market 1 Japanese yen = $0.012, while in the 180-day forward market 1 Japanese yen = $0.0126. 180-day risk-free securities yield 1.8% in Japan. What is the yield on 180-day risk-free securities in t..
What is the proper cash flow amount to use as the initial investment in fixed assets when evaluating the project.
You own a portfolio that has 45% invested in asset A, and 55% invested in asset B. Asset A’s standard deviation is 10% and asset B’s standard deviation is 12%. The correlation coefficient between the two assets is -0.58. The expected return on the po..
Blue Bull, Inc., has a target debt-equity ratio of .84. Its WACC is 8.8 percent, and the tax rate is 40 percent. If the aftertax cost of debt is 5 percent, what is the cost of equity? If the company’s cost of equity is 12.4 percent, what is its preta..
Money Corp. frequently uses a forward hedge to hedge its Malaysian ringgit (MYR) receivables. For the next month, Money has identified its net exposure to the ringgit as being MYR1,500,000. The 30-day forward rate is $.23. Based on this information, ..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd