User Account

All Pages

What is and expected return and variance of a portfolio

Assignment Help Corporate Finance
Reference no: EM13857989

1. Consider the following: A firm's operations are 45% GREATER than an average firm in the market. Relevant government securities trade @ 3.7%; and the current average return on the market as a whole is 9.1%. What rate of return must the firm pay to attract investors?

2. How does your answer to 1. above change if the company's operations stabilize and its risk relative to the market goes down to 110%; AND the expected return on the market GOES DOWN to 7.9%?

3. Consider the following information:

State of Prob of State Rate of Return if State Occurs

Economy of Economy Stock A Stock B Stock C

Boom .35 .07 .15 .33

Bust .65 .13 .03 -.06

What is and expected return and variance of a portfolio which is equally weighted in investments of each of the three stocks?

Reference no: EM13857989

Questions Cloud

What internal revenue code sections : Does the ex-wife have gross income and, if so, how much? Can the ex- husband deduct the annual payments and, if so, is the deduction For AGI for From AGI? What Internal Revenue Code Sections answer these questions?
Manufactures computer equipment : As the managing director for your company, based in India, that manufactures computer equipment, you are negotiating with an official in China. His job is to select computer equipment for city employees. You are adamant that you want all the specific..
Inventory requirements of the electric fans component parts : Describe how lean production principles may be used to maximize the efficiency and effectiveness of the electric fan supply chain process
Description of your creative original and innovative concept : Description of your creative/original/innovative concept. Illustration of the process through which you arrived at your concept - Mind Map
What is and expected return and variance of a portfolio : What is and expected return and variance of a portfolio which is equally weighted in investments of each of the three stocks?
Performed the five tasks of strategic management : Whats the answer for question 2? What grade would you give Michael O'Leary for the job he has done as CEO of Ryanair? Be prepared to support your answer based on how well (or not so well) he has performed the five tasks of strategic management discus..
Compare the calculated financial ratios against the industry : Compare the calculated financial ratios against the industry benchmarks for the industry of your assigned company
Create a job description for a fictitious employee : Create a job description for a fictitious employee that includes the following: Brief description of the organization. The organization can be what is created for this exercise or an organization that you are familiar with
Calculate the payback and profitability index : Calculate the payback and profitability index.

Reviews

Write a Review

Corporate Finance Questions & Answers

  Impact of the global economic crisis on business environment

This paper reviews the article of ‘the impact of the global economic crisis on the business environment' that is written by Roman & Sargu (2011).

  Explain the short and the long-run effects on real output

Explain the short and the long-run effects on real output, price, and unemployment

  Examine the requirements for measuring assets

Examine the needs for measuring assets at fair value in accounting standards

  Financial analysis report driven by rigorous ratio analysis

Financial analysis report driven by rigorous ratio analysis

  Calculate the value of the merged company

Calculate the value of the merged company, the gains (losses) to each group of shareholders, NPV of the deal under different payment methods. Synergy remains the same regardless of payment method.

  Stock market project

Select five companies for the purpose of tracking the stock market, preparing research on the companies, and preparing company reports.

  Write paper on financial analysis and business analysis

Write paper on financial analysis and business analysis

  Intermediate finance

Presence of the taxes increase or decrease the value of the firm

  Average price-earnings ratio

What is the value per share of the company's stock

  Determine the financial consequences

Show by calculation the net present value for the three alternatives (no education, network design certification, mba). Also, according to NPV suggest which alternative you advise your friend to choose

  Prepare a spread sheet model

Prepare a spread sheet model for the client that determines NPV/IRR with and without tax.

  Principles and tools for financial decision-making

Principles and tools for financial decision-making. Analyse the concept of corporate capital structure and compute cost of capital.

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