What is the downside risk and what is the sortino ratio

Assignment Help Financial Management
Reference no: EM131923818

Suppose you purchased ABC stock 4 month ago and your purchasing price was $40. The ABC stock pric... Suppose you purchased ABC stock 4 month ago and your purchasing price was $40. The ABC stock price went up and down in the past 4 months: $50, $38, $ 42, and $49. Assume risk free rate is 2%.

Monthly Expected Rate of Return? 7.05%

Monthly Standard Deviation?   .2153

Sharpe Ratio? .2345

What is the Downside Risk? (answer is 15.0 just don't know how to get it)

What is the Sortino Ratio (on the monthly basis)? (.30 is the answer just need to know how to get it)

HOW TO CALCULATE Downside Risk and Sortino Ratio NOT USING EXCEL.

Reference no: EM131923818

Questions Cloud

Considering project to purchase new equipment : Alessandro Florenzi Company (AFC) is considering a project to purchase a new equipment. The firm will not be issuing any new stock. What is its WACC?
Determine the present worth of the annual costs : Using a spreadsheet, determine the present worth of the annual costs and benefits at a discount rate of 5% per year, and compute the benefit/cost ratio.
Estimate which two debt restructures maximize firm value : Estimate which two debt restructures maximize firm value. Calculate return on equity (ROE) and earnings per share (EPS) if expansion is financed by debt.
Record any adjusting entries for interest in general journal : Record these transactions in general journal form. Record any adjusting entries for interest in general journal form.
What is the downside risk and what is the sortino ratio : Suppose you purchased ABC stock 4 month ago and your purchasing price was $40. What is the Downside Risk? What is the Sortino Ratio?
What is the break-even exchange rate : Calculate your profit if the exchange rates stay the same over the next 90 day. What is the break-even exchange rate?
Determine which mutual fund jimmy should select : Formulate a spreadsheet to determine which mutual fund Jimmy should select.
What are the expected returns of the two? stocks : What are the expected returns of the two? stocks? What are the standard deviations of the returns of the two? stocks?
Saving for retirement : Your client is 38 years old. She wants to begin saving for retirement, If she follows your advice, how much money will she have at 65?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd