User Account

All Pages

Modified duration of the bond position

Assignment Help Basic Computer Science
Reference no: EM132145618

A manager has a $250 million portfolio that consists of 40% stock and 60% bonds. The beta of the stock position is 1.4.

The modified duration of the bond position is 5. The manager wishes to achieve an effective mix of 75% stock and 25% bonds.

The price and beta of the stock index futures contracts are $166,400 and 1.1 respectively.

(The futures price includes the effect of the index multiplier.)

The price, modified duration, and yield beta of the bond futures contracts are $99,852, 4.6, and 0.98 respectively.

What is the appropriate strategy?

A) Short 887 bond futures contracts and go long 669 stock index futures contracts.

B) Go long 887 bond futures contracts and short 669 stock index futures contracts.

C) Go long 953 bond futures contracts and short 550 stock index futures contracts.

D) Short 953 bond futures contracts and go long 550 stock index futures contracts.

Reference no: EM132145618

Questions Cloud

Explain strategies adopted in implementing the legislation : Discuss the regulation of electronic nicotine delivery systems (e-cigarettes) in Australia. Explain strategies adopted in implementing the legislation
Why this concept is important to small business managers : Define risk and explain why this concept is important to small business managers.
What price must you receive : If you want to earn 20% on your investment, what price must you receive when you sell the stock four years from today?
Explain two competing solutions to this problem : Address the responsibilities of each level of government, which are federal, state, and local. (Most of the essay will be about the federal government).
Modified duration of the bond position : A manager has a $250 million portfolio that consists of 40% stock and 60% bonds. The beta of the stock position is 1.4.
Calculate the best-case and worst-case npv figures : Suppose the projections given for price, quantity, variable costs, and fixed costs are all accurate to within ±10 percent.
What is the expected price of the stock : The growth rate is expected to be 5%. If investors demand 10% on this stock, what is the expected price of the stock 10 years from now?
How a bill becomes a law in the federal government : Discuss how which steps the bill has already passed, and then explain which steps it has left to become a law.
Identify only one hrm-related issue : Identify only one HRM-related issue in your current/past organization from a manager's point of view - How you could have implement an alternative HRM strategy

Reviews

Write a Review

Basic Computer Science Questions & Answers

  Identifies the cost of computer

identifies the cost of computer components to configure a computer system (including all peripheral devices where needed) for use in one of the following four situations:

  Input devices

Compare how the gestures data is generated and represented for interpretation in each of the following input devices. In your comparison, consider the data formats (radio waves, electrical signal, sound, etc.), device drivers, operating systems suppo..

  Cores on computer systems

Assignment : Cores on Computer Systems:  Differentiate between multiprocessor systems and many-core systems in terms of power efficiency, cost benefit analysis, instructions processing efficiency, and packaging form factors.

  Prepare an annual budget in an excel spreadsheet

Prepare working solutions in Excel that will manage the annual budget

  Write a research paper in relation to a software design

Research paper in relation to a Software Design related topic

  Describe the forest, domain, ou, and trust configuration

Describe the forest, domain, OU, and trust configuration for Bluesky. Include a chart or diagram of the current configuration. Currently Bluesky has a single domain and default OU structure.

  Construct a truth table for the boolean expression

Construct a truth table for the Boolean expressions ABC + A'B'C' ABC + AB'C' + A'B'C' A(BC' + B'C)

  Evaluate the cost of materials

Evaluate the cost of materials

  The marie simulator

Depending on how comfortable you are with using the MARIE simulator after reading

  What is the main advantage of using master pages

What is the main advantage of using master pages. Explain the purpose and advantage of using styles.

  Describe the three fundamental models of distributed systems

Explain the two approaches to packet delivery by the network layer in Distributed Systems. Describe the three fundamental models of Distributed Systems

  Distinguish between caching and buffering

Distinguish between caching and buffering The failure model defines the ways in which failure may occur in order to provide an understanding of the effects of failure. Give one type of failure with a brief description of the failure

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