Create four portfolios with hypothetical money

Assignment Help Financial Management
Reference no: EM132048717

Create four portfolios with hypothetical money of approximately $10000 each.

This portfolios should be constituted as follows:

Portfolio A should have 8 common stocks which you expect to do well

Portfolio B Should have 8 common stocks which you expect to do poorly

Portfolio C should have 8 common stocks picked up randomly.

Portfolio D should have 8 common stocks which you expect to do well (portfolio A) and you change this portfolio if need be.

Portfolio E should I have 8 common stocks which expect to do poorly (portfolio B) and change the portfolio if need be.

portfolio F 3 mutual funds and 3 ETFs

Please follow the following guidelines

For each investment selection please indicate the following

A. What you purchased that is purchased 100 shares of bottomless gold mines at two dollars per share.

B. Date of purchase

C. Brokerage cost

2. Write a detailed report on portfolios A and B giving resource for why you have chosen each stock.

3. Idle money earns no interest. Don't just hold on to your $60000 cash. Park it temporarily where it will earn interest.

4. Write a detailed report on your portfolio results.

Reference no: EM132048717

Questions Cloud

What is the markup percentage : The shirts were priced to sell for $56 per shirt. What is the markup per shirt? What is the markup percentage?
What is the swap rate confirm : what is the “swap rate” Confirm your result by re-valuing the swap, using the swap rate for the “fixed leg”.
Capital to develop internet security software package : Security Sys- tems, a firm that needs additional capital to develop an Internet security software package,
Only risk that is relevant to rational-diversified investor : Everything else equal, an asset's value is directly related to. Which of the following is the only risk that is relevant to a rational, diversified investor?
Create four portfolios with hypothetical money : Create four portfolios with hypothetical money of approximately $10000 each.
Significance of delta to binomial options pricing model : What is the significance of delta to the BOPM? Explain the no-arbitrage approach to valuing options with the Binomial options pricing model.
Discuss potential cash budget benefits and pitfalls : Discuss potential cash budget benefits and pitfalls for the business, including how budget supports the strategic goal of business to increase revenue by 10%
What kind of contract does her brokerage have with them : Mary just listed her neighbor’s property. What kind of contract does her brokerage have with them?
Create hedge position as part of replicating portfolio : Estimate a hedge ratio and create a hedge position as part of a replicating portfolio.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the stocks expected price one years from today

A stock is expected to pay a dividend of $2.50 at the end of the year (i.e., D1 = $2.50), and it should continue to grow at a constant rate of 5% a year.

  About the call premium of the bond

You own a bond with a 5.6 percent coupon rate and a yield to call of 6.5 percent. The bond currently sells for $1,096. If the bond is callable in five years, what is the call premium of the bond?

  Calculate the market to book ratio-price earnings ratio

What is Roxie's Bed & Breakfast's book value per share? Calculate the market-to-book ratio. Calculate the price-earnings ratio

  Variety of summer recreation alternatives

Millbridge Township provides a variety of summer recreation alternatives. How many passes would be sold for the pool at that break-even volume?

  When corporations shares are owned by a few individuals

When a corporation's shares are owned by a few individuals who own most of the stock or are part of the firm's management, we say that the firm is closely, or privately, held. Going public establishes a firm's true intrinsic value and ensures that a ..

  What was average annual growth rate of dividends for firm

What was the average annual growth rate of dividends for this firm?

  Compute for the expected return for product

Compute for the expected return for Product A and Product B for the three events

  What is the all-in interest rate cost for each of the firms

.Assume Alpha desires floating-rate debt and Beta desires fixed-rate debt. What is the all-in interest rate cost for each of the firms?

  In an efficient capital market

In an efficient capital market:

  Ten-year zero coupon bonds issued

Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 11.38 percent, what is the value of these bonds?

  The net advantage to leasing is affected

The net advantage to leasing is affected by which of the following?

  When applying the capital asset pricing model

What additional assumptions (to the main three) are important when applying the Capital Asset Pricing Model and what are the underlying strengths and weaknesses of this application? Discuss the reliability of the model and give examples in your expla..

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!

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