User Account

All Pages

Explain how beta would influence your strategy

Assignment Help Finance Basics
Reference no: EM133070858

As a fund manager of PNN Asset Management Berhad, you are managing a RM15,000,000 stock portfolio, consisting blue chipsof Malaysian stocksand the beta for the portfolio is 1.20. The fundamental and technical analysissuggest some indications of temporarily marketoverheated and the market is expected to slump in the short run. The following information is given:

As on September 2021:

Current FBMKLCI = 1550 September FBM CI futures = 1530 October FBMKLCI futures = 1520 November FBMKLCI futures = 1515 December FBMKLCI futures = 1510 Annualized dividend yield = 3%

-Explain how beta would influence your strategy.

-In September 2021, what is the appropriate strategy for you to do 80% hedgingif you plan to hedge until December this year? (Note: state number of contracts, which contract and at what price). In December, the market falls and FBMKLCI reached at 1460 points. Calculate the net profit/loss that you face in both spot and futures market. (Assume dividends are earned over the period).

Reference no: EM133070858

Questions Cloud

Question on sexual harassment : Allison's boss at the outdoor retail store continually makes sexually suggestive comments to her and often brushes against her when she is in his office. Althou
Plan a divergent synthetic strategy : Plan a divergent synthetic strategy to efficiently obtain multiple compounds and Obtain and act upon safety and hazard information for chemicals
Determine the rpp annual pension income : a) Estimate the CPP benefits that Jamie and Janine will receive when they are 62, (calculate the ratio of earnings to YMPE) and the OAS benefits they will recei
Describe what risks face from strategy : You are working for a small bond portfolio manager. Your portfolio consists of the following Australian CGS: 10yr semi-annual coupon paying bond with a coupon r
Explain how beta would influence your strategy : As a fund manager of PNN Asset Management Berhad, you are managing a RM15,000,000 stock portfolio, consisting blue chipsof Malaysian stocksand the beta for the
Define the relative molecular mass : Define the relative molecular mass and molar mass of elements and compounds and the concept of stoichiometry in chemical reactions
What is the present value of future cash flows : Suppose you turn 62 in 2020, your full retirement age is 67, and your monthly benefit starting at full retirement age is $1,000.
What is the expected holding period return : Consider a? two-year coupon bond with a face value of ?$100 and a coupon rate of 8% (the next annual coupon is due in one year). The one-year spot rate is 7%, t
Determine the optimal mixed strategy solution : Consider the following two-person, zero-sum game where Player A is the Manager and Player B is the worker.

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