User Account

All Pages

What is the worst case value of the portfolio in six months

Assignment Help Accounting Basics
Reference no: EM132641558

Question - An investor owns 12,000 shares of a particular stock. The current market price is R100. What is the "worst case" value of the portfolio in six months? For the purposes of this question, define the worst case value of the portfolio as the value which is such that there is only a 1% chance of the actual value being lower. Assume that the expected return and volatility of the stock price are 8.5% and 23%, respectively.

Reference no: EM132641558

Questions Cloud

Elements that can cause uncertainty in enterprise cash : Describe three elements that can cause uncertainty within an enterprise's cash budget and provide your rationale for including each element. If you were the CFO
How does culture impact leadership : How does culture impact leadership? Can culture be seen as a constraint on leadership?
What is the price-earnings ratio of zinc corporation : The market price per share of Zinc Corporation is $145, and earnings per share is $20. What is the price/earnings ratio of Zinc Corporation?
Which customer market segments are being targeted : Which customer market segments (groups) are being targeted? How does the marketing of the product or service target customers based on their behavior?
What is the worst case value of the portfolio in six months : An investor owns 12,000 shares of a particular stock. The current market price is R100. What is the "worst case" value of the portfolio in six months
Cultural approaches to organizational communication : Cultural Approaches to Organizational Communication. Culture can create barriers that prevent us from understanding others.
What is the real-world probability : The risk-free rate is 4% and the expected return on the stock is 10%. What is the real-world probability that the payoff will be received
Describe idea for business : Many people dream about one day owning their own business. Describe an idea for a business that you might be interested in starting.
What is the value of the option : The current stock price is $35 and its volatility is 35%. The risk-free rate is 4% and the expected return on the stock is 10%. What is the value of the option

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Theory of interest - term structure of interest rates

Term Structure of Interest Rates

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture 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