Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Assume that you manage a risky portfolio with an expected rate of return of 12% and a standard deviation of 28%. The T-bill rate is 4%. Your risky portfolio includes the following investments in the given proportions: Stock A 20 % Stock B 30 % Stock C 50 % Your client decides to invest in your risky portfolio a proportion (y) of his total investment budget with the remainder in a T-bill money market fund so that his overall portfolio will have an expected rate of return of 11%. a. What is the proportion y? (Round your answer to 2 decimal places.) Proportion y b. What are your client's investment proportions in your three stocks and the T-bill fund? (Round your intermediate calculations and final answers to 2 decimal places.) Security Investment Proportions T-Bills % Stock A % Stock B % Stock C % c. What is the standard deviation of the rate of return on your client's portfolio? (Round your intermediate calculations and final answer to 2 decimal places.) Standard deviation % per year
Constant growth valuation Harrison Clothiers' stock currently sells for $36 a share. It just paid a dividend of $2.75 a share (that is, D0 = 2.75). The dividend is expected to grow at a constant rate of 6% a year. What stock price is expected 1 year ..
What is the current spot price of gold at the lease rate on the contract is 1.25% the risk free rate is 3% and thr 9 month forward price is $1000?
Student loans: In 2010, according to the JAVMA journal report, the average educational debt for veterinary school graduates was $133,873. The average starting salary for vets in private practice in 2010 was $67,548. If the vets earning an average sal..
Skyline Industries will need $1.8 million 5 years from now to replace some equipment. Currently, the firm has some extra cash and would like to establish a savings account for this purpose. The account pays 5.25 percent interest, compounded annually...
Which of these three bonds offers the highest current yield? Which one has the highest yield to maturity?
How much should Harrison be willing to pay for Pugs in total and per share if the firm is not expected to grow significantly and management insists that acquisitions be justified by no more than 10 years of projected cash flows?
Suppose you deposit $40 into an investment account at the end of every month for four years. If the interest rate on the account is 7.32% compounded monthly, how much will be in the account at the end of four years?
Consider a bond with a settlement date of 12/12/1990. The bond has a face value of $100. The maturity of the bond is March 15, 2014. The coupon rate is 5.5%. If the yield to maturity of the bond is 5.34% (bond equivalent yield, semi annual compoundin..
Debt has deadlines. Deadlines can be missed. Common stock lasts indefinitely. The higher percentage of resources raised from debt, the higher percentage resources subject to deadlines, hence risk. What is the effect on return on equity of raising cap..
You are a claims specialist for YYZ Insurance Company and your policyholder has purchased a trampoline to be placed in their backyard. They tell the neighbor’s kids they cannot use the trampoline, but while the policyholder was on vacation one of the..
O’Connell & Co. expects its EBIT to be $105,000 every year forever. The firm can borrow at 7 percent. O’Connell currently has no debt, and its cost of equity is 13 percent and the tax rate is 35 percent. The company borrows $136,000 and uses the proc..
Investors expect the market rate of return this year to be 20.00%. The expected rate of return on a stock with a beta of 1.4 is currently 28.00%. If the market return this year turns out to be 18.00%, how would you revise your expectation of the rate..
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd