Reference no: EM13929538
Finance - portfolios
Stock A - expected return = 7%, standard deviation of turn = 10%, beta = 2
Stock B - expected return = 6%, standard deviation of turn = 20%, beta = 1.5
correlation coefficient = 0.5
risk free rate = 1%
market risk premium = 4%
60% of funds invested in Stock A, 40% of funds invested in Stock B.
1) Find expected return of portfolio
2) Find standard deviation of portfolio
3) Find Sharpe ratios of Stock A, Stock B and portfolio
4) Find beta of portfolio
5) Find expected return of portfolio, under CAPM
What type of control procedures were ignored at daiwa
: What impact did the noted weaknesses in the internal control had on Daiwa, its internal and external auditors, its management, its audit committee and its shareholders?
|
What would tension in string when its angular displacement
: A simple pendulum of length 1.0 metre with a bob of mass m swings with an angular amplitude of 60? What would be the tension in the string when its angular displacement is 45?
|
Explain the four rights of common stockholders
: What are the three major questions that financial managers address? Explain the four rights of common stockholders. Which of the four rights is often missing in modern corporations?
|
Stock redemptions
: Adams, Inc. is a family-owned business that has one class of stock. There are 600 shares allocated equally to Al Adams, Bev Adams, Curt Adams, Derek Adams, Elroy Adams and Fred Murray. Would this transaction meet the three IRS change in stock ownersh..
|
Find expected return-standard deviation of portfolio
: Find expected return of portfolio, standard deviation of portfolio, Sharpe ratios of Stock A, Stock B and portfolio, beta of portfolio, expected return of portfolio, under CAPM
|
Prepare general journal entries for each of the transactions
: Prepare an income statement, statement of changes in stockholders equity, balance sheet, and statement of cash flows for 2013.
|
What factors affected demand for your product
: What factors affected demand for your product? What pricing strategies did you use? Describe the most successful day and your least successful? Why were they successful or unsuccessful
|
Find normal and tangential acceleration of point at instant
: A point moves along a circle of radius 4 cm.The distance x is related to time t by x =ct3 ,where c =0.3cm/s3.Find the normal and tangential acceleration of the point at the instant when its linear velocity is v =0.4 m/s.
|
Goal of managerial accounting
: Which of the following is not a goal of Managerial Accounting? A. provide information managers need for planning b. provide information managers need for market wide interest c. provide information managers need for control d. provide information man..
|