User Account

All Pages

Which portfolio will you select

Assignment Help Financial Accounting
Reference no: EM132959240

Question - Portfolios A and B are actively managed. Based on current dividend yields and expected capital gains the expected rates of return on portfolios A & B are 10 and 17% respectfully. The beta of A is 0.5, while that of B is 1.4. The T bill rate is currently 2% while the expected rate of return of the S&P 500 index is 12% . The standard deviation of portfolio a is 26% annually while that of B is 35%, and that of the index is 21%. If you hold S&P 500 index and are looking to add an active component to your portfolio, which portfolio will you select?

Reference no: EM132959240

Questions Cloud

What are some of the risks that the company and industry : Is another competitor on the market facing the same risks, and how did they address them? Briefly summarize. Has the company addressed these risks?
How much will an investment : Assume the rate of return on fund portfolio (before any fees) is 9% per year. How much will an investment of $1000 in the fund grow to after 6 years
Find what would have to pay in today market for the option : What would she have to pay in today's market for this option? In general, what determines the price an investor will have to pay for an option?
What strike price will he have to sell call options : What strike price will he have to sell his call options? Assume his expectations are the same as the market's, and that he will transact the same number of puts
Which portfolio will you select : If you hold S&P 500 index and are looking to add an active component to your portfolio, which portfolio will you select
What would that partner basis be in the property immediately : If that partner has an outside basis of $50,000, what would that partner's basis be in the property immediately after the distribution?
How much cash should sioux expect to collect : Sales are normally collected 60% in the month of sale, 35% in the month following the sale, How much cash should Sioux expect to collect
What is the implied interest rate for one-year gbp : Assume that 1-year USD LIBOR is 0.25% annual, actual/360. What is the implied interest rate for 1-year GBP, annual actual/360 (use mid-forward rates)?
What is annual rate of return : A new salon will normally generate annual revenues of $67,220, with annual expenses (including depreciation) of $40,200. What is annual rate of return

Reviews

Write a Review

Financial Accounting Questions & Answers

  Financial statement analysis and preparation

Financial Statement Analysis and Preparation

  Shareholder of a company

Describe the ways that a person can become a shareholder of a company. Why Wal-Mart would split its stock?

  Financial and accounting principles

An understanding of financial and accounting principles can be a valuable tool for managers. While not all managers will find themselves calculating financial ratios or preparing annual financial data.

  Prepare a statement of cash flow using the direct method

Prepare a Statement of Cash Flow using the Direct Method and Prepare the Operations section of the Statement of Cash Flow using the Indirect Method.

  Financial accounting assignment

This assignment has one case study and two question apart from case study. Questions related to document Liquidation question and Company financial statements question - Torquay Limited

  Prepare general journal entries for goela

Prepare general journal entries for Goela Ltd

  Principles of financial accounting

Prepare the journal entry to record the acquisition of the assets.

  Prepare general journal entries to record the transactions

Prepare general journal entries to record the transactions, assuming use of the periodic inventory system

  Global reporting initiative

Compare the view espoused by the economist Milton Friedman about the social responsibilities of business with the views express by Stigler.

  Explain the iasb conceptual frameworks

Explain the IASB Conceptual Framework's perspective of users and their decisions.

  Determine the company''s financial statements

T he focus of the report is to determine the extent to which you are comfortable relying on the financial statements as presented by management .

  Computation of free cash flow

Computation of Free Cash Flow

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