User Account

All Pages

What will the risk of the portfolio be

Assignment Help Cost Accounting
Reference no: EM133205027

The Bank of Tinytown can only approve two loans but has four loans that the credit department has identified. Given the data presented in Table 1 what are the expected return and standard deviation of the portfolio that has the least risk? Given the covariances, can the calculation be simplified? What will the risk of the portfolio be, given the simplification?

Table 1

Item

Loan Size

Return

Variance and Covariance 

($ million)

(%)

Loan A

Loan B

Loan C

Loan D

Loan A

$ 1,600.0

11.0

0.1065

 

 

 

Loan B

$ 1,600.0

7.50

0.0425

0.0525

 

 

Loan C

$ 1,600.0

12.0

- 0.1000

0.0650

0.0975

 

Loan D

$ 1,600.0

8.0

0.0850

0.0355

0.0750

0.0825

Reference no: EM133205027

Questions Cloud

What is the project net present value : Floyd is considering the purchase of a machine that costs $300,000. The project is expected to produce after-tax cash flows of $65,000 in the first year and inc
Discuss selecting the right project or projects in portfolio : Please discuss selecting the right project or projects in a portfolio. How do you decide? How can you quantify the choices you make?
Explain hedging policy using fx derivatives : ABC Inc, a US-based firm, is in the process of internationalizing its operations. As a result of such internationalization, the company's net income will increa
Create a one-page brochure or a brief two-minute infomercial : Create a one-page brochure, or a brief one to two-minute infomercial, for people in midlife or late adulthood, targeting the enhancement optimal aging.
What will the risk of the portfolio be : The Bank of Tinytown can only approve two loans but has four loans that the credit department has identified. Given the data presented in Table 1 what are the e
Complexities encountered developing cooperative strategies : What are some of the major complexities encountered in developing cooperative strategies such as strategic alliances and joint ventures?
Difference between a price setter and a price taker : Difference between a price setter and a price taker and explain if most providers may be classified strictly as price-setters or price takers
Calculate vendata resources component costs : Vendata Resources seeks to invest R10 million in a new mining project in order to expand its gold production capacity.
What is the predictive analytic technique : What is the Predictive Analytic Technique used in the study Ozcan, Y. A. (2017). Analytics and decision support in health care operations management

Reviews

Write a Review

Cost Accounting Questions & Answers

  What are the warranty expense balances

In 2025, Dull incurred actual warranty costs relative to 2024 computer sales of $12,000 for parts and $18,000 for labor. What are the Warranty Expense balances

  Estimate the fixed cost of maintenance

Methods of Estimating Costs: High-Low, Ethical Issues - Estimate the fixed cost of maintenance annually and the variable cost of maintenance per visitor.

  Determine the dimne generate total sales

Refer to the above information. In order to earn an operating income of $182,500, Dimne must generate total sales of approximately

  Create balanced scorecard for a nestle manufacturing company

Create balanced scorecard for a Nestle manufacturing company and also suggests some new measures that may be significant for management

  Establish a ledger for the accounts

Establish a ledger for the accounts listed and enter the beginning balances - Post your journal entries to the ledger accounts

  What costs would you classify as fixed

What costs would you classify as fixed with respect to the cost of a Zume pizza? Are there any other fixed costs you could envision that Zume might incur?

  Determine whether calvin should make or buy ekrobs

Prepare an incremental analysis to determine whether Calvin should make or buy ekrobs.

  Explain the weakness in internal control

Explain the weakness in internal control and identify the control principle that is violated and suggest a change in the procedure that will result in good internal control.

  Calculate an hourly composite charge-out rate

Calculate an hourly composite charge-out rate that will recover all labour costs for the company. Calculate the accrual hourly rates to bring to account

  Determine the provided expressions

Determine the provided expressions using the a, b, and c from your birth date.

  Calculate the budgeted total unit cost

The Company's budgeted selling and administrative expenses for 2017 are $12,000,000. Calculate the budgeted total unit cost

  What other nonfinancial and qualitative factors bremer

What other nonfinancial and qualitative factors should Bremer consider before deciding on whether it should implement a JIT system?

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