How much value can you add

Assignment Help Portfolio Management

Reference no: EM13925370

You are a benchmark timer who in backtests can add 50 basis points of risk-adjusted value added. You forecast 14 percent benchmark volatility, the recent average, but unfortunately benchmark volatility turns out to be 17 percent. How much value can you add, given this misestimation of benchmark volatility?

Reference no: EM13925370

Questions Cloud

What is palindromic function : Use a direct method to prove that for any string x, xxR is palindromic.

Debt-to-equity ratio and income tax rate : For Florianópolis Corporation debt-to-equity ratio, income tax rate, and dividend payout ratio are all 30%. The cost of debt is 11%. Florianópolis has 2 million shares of common stock, and $27 million in long-term bonds. Its dividend is $1.20 per sha..

Suppliers of component parts : The President of EEC recently called a meeting to announce that one of the firm's largest suppliers of component parts has approached EEC about a possible purchase of the supplier. The President has requested that you and your staff analyse the fe..

Sinking fund and preferred dividends-out of current income : Goiânia Corporation is expecting to have EBIT next year of $11 million, with a standard deviation of $7 million. Goiânia has $35 million in bonds with coupon of 8%, selling at par, which are being retired at the rate of $2.5 million annually. Calcula..

How much value can you add : You forecast 14 percent benchmark volatility, the recent average, but unfortunately benchmark volatility turns out to be 17 percent. How much value can you add, given this misestimation of benchmark volatility?

Financially accountable for their operations : According to GASB Statement No. 44, all of the following is a recommendation category for the CAFR's statistical section EXCEPT

Describe the current organizational structure : Structure and Organization: Describe the current organizational structure and background information. How does the organization organize its internal and external communication? What is the age of the organization? What is the organizational struc..

Period cost : Identify each cost as either a product or a period cost

How many stages are there of global corporate citizenship : Centralize under common leadership wide-ranging corporate citizenship functions.

User Account

All Pages