Already have an account? Get multiple benefits of using own account!
Login in your account..!
Remember me
Don't have an account? Create your account in less than a minutes,
Forgot password? how can I recover my password now!
Enter right registered email to receive password!
Twenty years after the original Fama-French model, Fama and French (2013) have proposed a new, five-factor model, incorporating two additional factors, RMW and CMA. RMW (robust-minus-weak) is the difference in returns between a portfolio of firms with robust and weak profitability; CMA (conservative-minus-aggressive) is the difference in returns between a portfolio of firms with conservative (i.e. low) and aggressive (i.e. high) investment. Recall the constant growth dividend discount model: P0=E1*(1-b)/(r-g)
The economic intuition behind why HML, CMA and RMW are risk “premiums” can be derived easily from the above fundamental valuation formula. Explain how.
You deposit dollar 200 in a bank in a 7-year time deposit. With a time deposit you cannot withdraw funds from the account until the end of the term. Interest in the account is compounded semiannually (m 2) at the annual nominal rate of 10 percentage...
We are evaluating a project that costs $1,180,000, has a ten-year life, and has no salvage value. Assume that depreciation is straight-line to zero over the life of the project. alculate the base-case cash flow and NPV. What is the sensitivity of NPV..
A financial institution has entered into an interest rate swap in which it receives 10% per year with semiannual compounding and pays 6-month LIBOR on a principal of $10 million for five years. Payments are made every six months. The current 6-month ..
A stock will pay no dividends for the next 3 years. The stock's estimated price per share exactly TWO years from now, P2 , should be $______.
A newly issued 10-year maturity, 6% coupon bond making annual coupon payments is sold to the public at a price of $955. What will be an investor’s taxable income from the bond over the coming year? The bond will not be sold at the end of the year.
ROSE wants to know how much risk she must undertake to generate a good return of her portfolio. The current risk-free return is 5%. The return of overall stock market is 16%. Use the CAPM to calculate how high the beta coefficient of rosemary's portf..
A two-for-one stock split will result in: Based on the following information, make an estimate of the stock's beta:
Consider a firm that is expected to generate earnings of $3 per share next year. If the mean ratio of share price to expected earnings of competitors in the same industry is 15, then the valuation of the firm’s shares is?
Joes Tasty Burger has determined that its production facility has a design capacity of 400 hamburgers per day. The effective capacity, however, is 250 hamburgers per day. Lately Joe has noticed that output has been 300 hamburgers per day. Compute bot..
Ratio Analysis - Calculate the current ratio, quick ratio, cash to current liabilities ratio, over a two-year period. Discuss and interpret the ratios that you calculated
You recently graduated from college with a business degree and accepted a position at a major corporation earning more than you could ever dreamed. Make five lists of the financial service firms that could provide you each of these services.
Lowell Information Technology, inc (LIT) had sales of $40.2 billion in 2009. Suppose you expect its sales to grow at a rate of 10% in 2013,
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!
whatsapp: +1-415-670-9521
Phone: +1-415-670-9521
Email: [email protected]
All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd