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!
QUESTION
a) Discuss the importance of diversification in the context of stock markets using appropriate numerical illustrations.
b) Mimine and Minush are two companies with the following dividend and market price per share (MP) for the period 2000-2005
Mimine
Minush
Year
DIV (Rs)
MP
DIV(Rs)
2000
1.4
22
1.53
31
2001
25
20
2002
1.8
35
2003
1
27
2
67
2004
36
100
2005
39
3
154
i. Calculate the average return and risk for the above shares. Show clearly your calculation. Interprete your results.
ii. Calculate the portfolio return if an investor decides to make a portfolio with equal weight.
iii. If the correlation coefficient is -0.5 calculate the portfolio risk. Comment on your answer.
(c) Differentiate between systematic and unsystematic risk.
Acquisition (takeover) or merger A merger is the synergy or combination of two companies which are roughly equal in size by consensus of two organisations. A takeover is where
In a fixed-rate coupon bond, the change in the price can be attributed to the change in the market interest rates. This change is due to the difference in the pre
1. Find out the present value of Rs. 10,000 to be required after 4 years if the interest rate is 6%. 2. A Firm can invest Rs. 10,000 in a project with a life of three years.
What is the market risk premium in Spain at the present moment - the number which I have to use in the valuations? It is not possible to talk of "the" market premium for Spain.
Takeover, Inc. is a Delaware corporation whose only stated purpose is to acquire companies. It has virtually no assets and no employees other than the original founders who contri
Harrelson Inc. currently has $750,000 in accounts receivable, and its days sales outstanding (DSO) is 55 days. It wants to reduce its DSO to 35 days by pressuring more of its custo
Which type of insurance company generally takes on the greater risks: a life insurance company or a property and casualty insurance company? The risks protected against by cas
Banks and brokerage firms are measured financial centers
Frankfurt Stock Exchange The roots of the Frankfurt Stock Exchange may be traced back to the period of medieval fairs. As early as the middle of the ninth century, Emperor Ludwi
Dividend cover Dividend cover measures the relationship among earnings per share and net dividends per share. The higher the altitude of dividends for any given level of EPS t
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