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!
Problem:
Evergreen Balanced Fund is composed of US$120 million in international equities andUS$100 million in international bonds based on current market values. Based onprevious stress testing in the case of a market event leading to a liquidity crisis, theFund can sell and receive 94% of market value of assets if it needed to liquidate inthree days but 98.5% of market value if sold in five days. Two institutional investors,a pension fund and a sovereign wealth fund, own 6% and 8% of the share capitalrespectively.
Required:
a) Fears of higher inflation and interest rates have caused market volatility and thetwo institutional investors now wish to exit their holdings in the EvergreenBalanced Fund. What will be the proceeds received by both investors if the Fundliquidates its assets in three days and five days respectively?
b) What is a bank run and how does it differ from this type of liquidation? Whatmeasures can bank regulators implement to minimize the effects of a bank run?List three methods regulators could deploy.
c) For the above Fund if it had issued 30.475 million units what would be the netasset value?
Find the comparable interest rate compounded monthly if it is 15% per year compounded quarterly.
A 10 year, 6% semiannual, $1,000 bond was issued and immediately the current market rates rose to 8% (compounded semi annually). How much could that bond be sold for today?
Bayou Okra Farms just paid a dividend of $2.65 on its stock. The growth rate in dividends is expected to be a constant 4.5 percent per year indefinitely. Investors require a return of 15 percent for the first three years, a return of 13 percent for t..
How would you define Niche Marketing? Explain two advantages and disadvantages of niche marketing?
If the house is currently worth $245,000 and most lenders are willing to lend up to 90% of home value, how much excess equity can the Peters cash out? (Ignore the tax effects).
Differentiate asexual from sexual reproduction, and describe each of these processes in fungi.
It is important to understand that almost all (if not all) organizations have information systems, and use them for operational, tactical, and strategic advantage. In order to have information systems to remain effective and efficient, these syste..
Which one of the following terms best describes this ?firm's policy of assigning required returns
1. About one-half of all newly created businesses in the U.S. are dissolved or cease operations within how many years after being started?
Consider a bond that has a life of 18 months and pays a coupon of 6% per annum (with semiannual payments and one having just been made). The yield to maturity o
The Florida lottery agrees to pay the winner $244,000 at the end of each year for the next 20 years. What is the future value of this prize if each payment is put in an account earning 0.09?
Calculate the final amount an investor would have earned given a $1000 initial investment. Also express your answer as an annualized return. If risk were eliminated by holding stocks for 20 years, what would you expect to find? What can you conclude ..
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