Portfolio that consists of stock

Assignment Help Financial Management

Reference no: EM132041259

1. On January 20, 2010, Fashion Inc. declared a cash dividend of 75 cents per share. On March 18, 2010, Fashion’s stock went ex-dividend (i.e., the ex-dividend date is March 18), and on April 15, 2010 Fashion Inc. will pay the dividend to its shareholders. You bought 100 shares on March 17, 2010. What is the total dividend payment you will receive from Fashion on April 15?

2. Stock A has an expected return of 5% and a standard deviation of 9%. Stock B has an expected return of 8% and a standard deviation of 12%. Stock A and B’s returns are perfectly negatively correlated, i.e., ?A,B = -1. You want to invest $1,000 in a portfolio that consists of Stock A and B, such that your portfolio has zero risk. How much of your money (in dollars) will you invest in Stock B?

Can you explain why the answers are the answers?

Reference no: EM132041259

Questions Cloud

Opportunities that might face an international executive : From an executive's position, identify and explain at least three challenges and opportunities that might face an international executive over the next five

What is the view of marx on the city : What is the view of Marx on the city and how does it differs from the later theories?

Discuss about the importance of confidentiality : In health care, confidentiality is vital. In this assignment, you will learn about the importance of confidentiality and various laws that were enacted.

What is the importance of the credibility of sources : What is the importance of the credibility of sources and evidence in evaluating other points of view.

Portfolio that consists of stock : You want to invest $1,000 in a portfolio that consists of Stock A and B, such that your portfolio has zero risk.

United parcel services with that of vstax on yahoo finance : Please do this for comparison with United Parcel Services with that of VSTAX on yahoo finance.

Purchase of rfid fixed-asset tracking system : An industrial engineer proposed the purchase of an RFID Fixed-Asset Tracking System for the company's warehouse and weave rooms.

Connection between postings on facebook : How might the government show the connection between postings on Facebook and those who post them? Discuss.

Design an innovation system for a small business : BSBINN502 Build and sustain an innovative work environment - explain how quality is embedded in systems and processes

User Account

All Pages