Reference no: EM132920892
Questions -
Q1) There is a 21.50% probability of a below average economy and a 78.50% probability of an average economy. If there is a below average economy stocks A and B will have returns of 3.40% and 13.10%, respectively. If there is an average economy stocks A and B will have returns of 11.80% and -9.10%, respectively. Compute the:
a) Expected Return for Stock A:
b) Expected Return for Stock B:
c) Standard Deviation for Stock A:
d) Standard Deviation for Stock B:
Q2) There is a 32.80% probability of an average economy and a 67.20% probability of an above average economy. You invest 45.10% of your money in Stock S and 54.90% of your money in Stock T. In an average economy the expected returns for Stock S and Stock T are 15.00% and 12.40%, respectively. In an above average economy the the expected returns for Stock S and T are 18.30% and 16.80%, respectively. What is the expected return for this two stock portfolio?
Q3) You are invested 11.00% in growth stocks with a beta of 1.60, 12.10% in value stocks with a beta of 0.88, and 76.90% in the market portfolio. What is the beta of your portfolio?
Q4) An analyst gathered the following information for a stock and market parameters: stock beta = 1.15; expected return on the Market = 11.50%; expected return on T-bills = 3.40%; current stock Price = $8.97; expected stock price in one year = $9.45; expected dividend payment next year = $4.98. Calculate the
a) Required return for this stock:
b) Expected return for this stock:
Q5) The market risk premium for next period is 4.70% and the risk-free rate is 3.50%. Stock Z has a beta of 1.07 and an expected return of 14.50%. What is the:
a) Market's reward-to-risk ratio:
b) Stock Z's reward-to-risk ratio:
|
Journalize the accrual on December
: Benjamin Co. has a year end of December 31. Journalize the accrual on December 31 and the 1st payment on Aug 31, 2021
|
|
Locate a business article related to coupon bonds
: Please locate a business article related to coupon bonds, net present value and internal rate of return. Provide a link to the article along with a brief summar
|
|
What is the total room revenue at the msred hotel
: What is the total room revenue at the MSRED hotel? The MSRED Hotel is a 250-room hotel, open 365 days a year with total departmental expenses of $7,000,000
|
|
How awarding damages to a child
: In Turpin v. Sortini, the California Supreme Court said it was difficult to understand how awarding damages to a child who would not have been born if not for t
|
|
What is the expected return for this two stock portfolio
: You invest 45.10% of your money in Stock S and 54.90% of your money in Stock T. What is the expected return for this two stock portfolio
|
|
Evaluating an argument
: Every day we engage in arguments. This is another instance where defining our words is important. When we talk about critical thinking, the "arguments" we refer
|
|
How have these changes in supply and demand affected
: What factors influence the demand for this product? What factors influence the supply of this product and How have these changes in supply and demand affected
|
|
Do you use semicolons when writing
: -Do you use semicolons when writing? Why or why not? Do you think your habits will change now that you have studied this chapter?
|
|
Value chain includes costs from research to product design
: The value chain includes costs from research to product design, to production, to marketing and sales, to distribution, and to customer support after the sale.
|