Reference no: EM131059314
Quantitative Business Analysis
On Sheet 1 of your homework (the first tab), you must put your identification as shown in the syllabus and several emails. You must show your work and all formulas must be present in cells where needed. You should answer all questions on the attached tabs.
Using the historical audit method, determine the probabilities of success for your personal retirement goals. Use your age and estimated retirement spending levels calculate what you will need. You can use your independence calculations from earlier this semester as a template or you can build the model from scratch. You need to answer these questions: 1) How much do you need to have saved at retirement, 2) What is the average max and min ending portfolio values, 3) What is the probability of success, 4) What is the average expected return for your portfolio, and 5) what is the average length the portfolio lasts in retirement? Extra credit: calculate how much you need to save annually in order to reach your target portfolio value at retirement. Use your portfolios average return as the return value on your savings. You only need to use the returns for the Large Cap stocks Hint: Use the spreadsheets I used in class and your original independence caluculation homework as a template for setting up the calculations.
Using the Monte Carlo method, determine the probabilities of success for your personal retirement goals. Run 1000 trials. Use your age and estimated retirement spending levels calculate what you will need. You can use your independence calculations from earlier this semester as a template or you can build the model from scratch.
You need to answer these questions:
1) How much do you need to save,
2) What is the average max and min ending portfolio values,
3) What is the probability of success,
4) What is the average expected return for your portfolio, and
5) what is the average length the portfolio lasts in retirement?
6) using the vlookup function, create a blended portfolio using 20% Large Cap, 35% Small Cap and 45% International.
7) Use solver to find the optimal asset class mix that produces the highest expected return (use all the possible asset classes).
Hint: For EC 2, create a separate index that shows the growth of $1. Maximize the ending value.
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What is the distinction between interest rates and return
: What is the distinction between interest rates and return? State the hypothesis of the theory of portfolio choice? State the theory of supply and demand in the bond?
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Write a report suggesting appropriate metrics
: Write a report suggesting appropriate metrics and suggest how these can be collected.
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Describe the early childhood program and the community
: Describe the early childhood program and the community where it resides and explain why you chose this program. Provide details on the demographics of the families and community where the program resides.
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Should the firm conduct test marketing
: Decision Trees Ang Electronics, Inc., has developed a new DVDR. If the DVDR is successful, the present value of the payoff (when the product is brought to market) is $34 million. If the DVDR fails, the present value of the payoff is $12 million. The ..
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What is the average max and min ending portfolio values
: What is the average max and min ending portfolio values? What is the probability of success? What is the average expected return for your portfolio, and what is the average length the portfolio lasts in retirement?
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Deciding whether to invest in a new machine
: Option to Wait Your company is deciding whether to invest in a new machine. The new machine will increase cash flow by $475,000 per year. The cost of the machine will decline by $210,000 per year until it reaches $2,270,000, where it will remain. If ..
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Describe possible standards that might be used for
: Reports which might be submitted for a term project in a university;
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Affected by exchange rate risk and political risk
: Capital budgeting can be affected by exchange rate risk, political risk, transfer pricing, and strategic risk. Select a sector and specific company in the mid- large size range, and explain how each of these factors can affect capital budgeting. Whic..
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Change due to changes in the interest rate
: The risk that the price of a bond will change due to changes in the interest rate is greater: Corporate bonds are shown on the balance sheet as:
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