User Account

All Pages

The variance of the market portfolio daily returns

Assignment Help Financial Management
Reference no: EM132029567

Stock ABC has variance of daily returns 0.0001 and market beta 0.9. Stock XYZ has variance of daily returns 0.0004 and market beta of 1.3. The variance of the market portfolio daily returns is 0.00025. Fill out the variance-covariance matrix for ABC and XYZ using the market model.

Reference no: EM132029567

Questions Cloud

What is the probability of randomly selecting a person : What is the probability of randomly selecting a person who is American or South American?
Calculate the current price of value bond : Calculate the current price of a $5,000 par value bond that has a coupon rate of 17 percent,
How do you plan to implement the given intervention : What results do you expect? How do you plan to implement this intervention? Do you have any specific strategy in mind? What resources will you need?
What is the probability that you randomly select a black : What is the probability that you randomly select a black, don't put the black back, then draw another black, don't put that black back, and then draw another
The variance of the market portfolio daily returns : The variance of the market portfolio daily returns is 0.00025. Fill out the variance-covariance matrix for ABC and XYZ using the market model.
Mean of the relevant distribution : Estimate the number of workers in the sample who are union members by giving the mean of the relevant distribution
Examine the systems and structures of an organization : To initiate this project, this week you examine the systems and structures of an organization with which you are familiar.
Portfolio is supposed to be designed to exactly emulate : Please attach your S & P 500 Portfolio here. This portfolio is supposed to be designed to exactly emulate the S & P 500. Allocate your capital accordingly.
What is the mean-variance and standard deviation : a. What is the mean, variance, and standard deviation of the aggregate donation, S?

Reviews

Write a Review

Financial Management Questions & Answers

  What would be your reaction to the greek crisis

As an investor, what would be your reaction to the Greek crisis? Explain with an example.

  Capital asset pricing model with arbitrage pricing theory

Compare and contrast Capital Asset Pricing Model (CAPM) with Arbitrage Pricing Theory (APT).

  Agreement is called a line of credit

A company and a bank sign an agreement where the bank agrees to provide loans when the company requires them. This agreement is called a line of credit. What characteristics of the agreement and the bank will cause the company to change its payment l..

  Bonds based on the current price for the bonds

Evaluate the bonds and determine the yield to maturity of both bonds based on the current price for the bonds.

  Commercial paper is short-term borrowing

Find a sentence in the article that illustrates the point that commercial paper is a short-term borrowing (i.e., a money market security).

  Deferred gain before and after the transaction

Reese and Jake engage in a like-kind exchange. Reese transfers real estate with a fair market value of $500,000 and an adjusted basis of $200,000 to Jake. Jake transfers real estate worth $700,000 and an adjusted basis of $250,000, plus a $200,000 mo..

  WACC and Optimal Capital Structure

F. Pierce Products Inc. is considering changing its capital structure. F. Pierce currently has no debt and no preferred stock, but it would like to add some debt to take advantage of low interest rates and the tax shield. Based on this information wh..

  How much can dawn claim as an itemized deduction

Itemized Deduction. Dawn's adjusted gross income is $16,700. Dawn has $1,800 in unreimbursed medical expenses. How much can Dawn claim as an itemized deduction?

  Issue of bonds-at what price would the bonds sell

Company X sold an issue of bonds with a 20-year maturity, a $1000 par value, an 8% coupon rate, and annual interest payments. 8 years after issue, the going rate of interest on comparable bonds rose to 10%. At what price would the bonds sell?

  What is the required percentage rate of return of equity

Companies U and L are identical in every respect except that U is unlevered while L has $10 million of 5.9% bonds outstanding. Assume that (1) all of the MM assumptions are met, (2) there are no corporate or personal taxes, (3) EBIT is $2.1 million, ..

  Compute earnings per share for the year 2015

C-mart, Inc. had earnings after taxes of $26,500,000 in the year 2015 with 100,000 shares outstanding.

  Requires an investment in new equipment

Newcastle Coal Company is considering a project that requires an investment in new equipment of $3,800,000, with an additional $190,000 in shipping and installation costs. Newcastle estimates that its accounts receivable and inventories need to incre..

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