Reference no: EM131041669
1. An investment will produce an annual cash flow of $4000 for three years. The investor requires a 12% rate of return compounded annually. What is the maximum amount that the investor can pay and still earn the required rate of return?
A. $9,607
B. $10,218
C. $10,714
D. $12.000
2. Robin purchased a stock at a stock at a price of $18 a share. She received quarterly dividends of $0.5 per share. After one year, Robin sold the stock at a price of $19.50 a share. What is her percentage total return on this investment?
A. 10.3%
B. 11.1%
C. 17.9%
D. 19.4%
3. The markets in general are paying a 3% real rate of return. Inflation is expected to be 2%. ABC stock commands a 6% risk premium. What is the risk-free rate of return?
4. An investment produced annual rates of return of 5%, 12%, 8% and 11% respectively over the past four years. What is the standard deviation of these returns?
5. What is the expected return on a stock with a beta of 1.09, a market risk premium of 8%, and a risk-free rate of 4%?
6. The risk-free rate of return is 4%, while the market rate of return is 11%. Delta Company has a historical beta of 1.25. Today, the beta for Delta Company was adjusted to reflect internal changes in the structure of the company. The new beta is 1.38. What is the amount of the change in the expected rate of return for Delta Company based on this revision to beta?
7. Dr. Zweibel's portfolio consists of four stocks: AZMN, 35%, beta 2.4; MKR, 20%, beta 1.6; ABDE, 2.5%, beta 1.8; and SBUK, 20%, beta 2.1. Compute Dr. Z's portfolio beta. Does he seem to be a conservative or aggressive investor?
8. Assume that an investor generates the following income stream and can be purchased at the beginning of 2009 for $1000 and sold at the end of 2015 for $1200. Estimate the yield for this investment. If a minimum return of 9% is required, would you recommend this investment? Explain.
|
Discuss the importance of work-related attitudes
: Discuss how understanding yourself is so important in being a good manager, and describe two methods to increase self-awareness. Discuss the importance of work-related attitudes. Describe what transformational leadership is and explain how managers c..
|
|
Understand the difference among coupon yield
: Demonstrate that you understand the difference among coupon yield, current yield, and yield to maturity with the following illustration for Morgan Stanley debt, par value of $1000: current price of $1032, coupon rate of 4.2%, issue date of Septemb..
|
|
Personal property insured under a homeowners
: James has his home and personal property insured under a Homeowners (special form)policy.The dwelling is insured for $120,000.The replacement cost of the home is $200,000.Indicate the extent to which each of the following losses would be covered unde..
|
|
Write a user-defined function that calculates a student gpa
: Provide a list of suggested indexes and the DDL script to create them. Include an explanation of the purpose of indexes and how you made your decision for the fields to include in your list of suggested indexes.
|
|
What is the maximum amount that the investor
: 1. An investment will produce an annual cash flow of $4000 for three years. The investor requires a 12% rate of return compounded annually. What is the maximum amount that the investor can pay and still earn the required rate of return?
|
|
Explain whether the ethical leaders at your current
: Explain whether the ethical leaders at your current or at a previous employer act/acted as positive or negative role models in their visible ethical actions? Give an example in your analysis. How are/were ethics communicated in this employment cultur..
|
|
Briefly explain the concept measurement in accounting
: "Measurement" is an important concept in accounting. Briefly explain the concept and explain the basis upon which accounting measurement has historically been undertaken. Discuss alternative measurement bases that have been proposed more recently
|
|
What is the best philosophical approach
: What is the best philosophical approach (capabilities, ethical, economic, corporate citizenship, or utilitarianism) underpinning corporate social responsibility and on what basis? Give an example in arguing your viewpoint.
|
|
Review the organizational charts
: Review the organizational charts presented in your reading materials. The sample organization chart lists major areas of responsibility. Select one area under the CFO and indicate the additional levels of management that would fall under this ar..
|