Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

1) Given following probability distribution for assets x and y, find out expected rate of return, variance, standard deviation, and coefficient of variation for two assets. Which asset is a better investment?
X Y

Return Probability Return Probability
8% .10 10% .25
9% . 20 11% .35
11% . 30 12% .40
12% .40

2) You are going to invest= $20,000 in portfolio consisting of assets x, y, z, as follows:

Asset Annual Return Probability Beta Proportion
X 10% .50 1.2 .33333
Y 8% .25 1.6 .33333
Z 16% .25 2.0 .33333

a) Giving the information in the above table, what is the expected annual return of this portfolio?

b) Determine the beta of this portfolio?

3) Dr. Ray is considering investment in the project with beta coefficient of= 1.75. What would you suggest him to do if this investment has= 11.5% rate of return, risk free rate is= 5.5%, and rate of return on market portfolio of assets is= 8.5 %?

4) Asset Y has a beta of= 1.2. Risk free rate of return is 6%, whereas the return on market portfolio is 12%. Assets market risk premium is?

5) Supposing a risk-free rate of= 8% and market return of= 12%, would wise investor obtain security with beta of 1.5 and a rate of return of= 14% given facts above?

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M914886

Have any Question? 


Related Questions in Basic Finance

1 what are some ways in which scientists get ideas for

1. What are some ways in which scientists get ideas for their research? 2. Why can theories not be proved or disproved by research? 3. Given that proof and disproof are impossible in science, how does scientific knowledg ...

Describe the mil-std-1312 nas test name three generic

Describe the MIL-STD-1312 (NAS) test ? Name three generic ways to prevent or at least minimize self-loosening ? Define prevailing torque ? A proper length-to-diameter ratio for the bolt can reduce or eliminate self-loose ...

Analysis of denver furniture corpdenver furniture corp is

Analysis of Denver Furniture Corp. Denver Furniture Corp. is nationally recognized for making high-quality products. Management is concerned that the company is not fully exploiting its brand power. Denver's production m ...

For this question i had been using spirit airlines 2015 10k

For this question I had been using Spirit AIrlines 2015 10k report on module 1. However, I'm a bit lost as to how to read it in terms of bonds. Can someone explain this to me?  http://ir.spirit.com/financials.cfm  Using ...

Find at least two articles from the proquest database that

Find at least two articles from the ProQuest database that highlight and discuss two of the biggest challenges facing financial managers today. One of the articles should be about the challenge of maintaining ethical fin ...

1 an interest rate swap has two primary risks associated

1. An interest rate swap has two primary risks associated with it. Identify and explain each risk. 2. Define and explain a constant maturity swap. 3. Explain how an interest rate swap is a special case of a currency swap ...

Prepare a career preparation portfolioto prepare for your

Prepare a career preparation portfolio. To prepare for your job search, conduct research and meet with people who can help you. First, target specific people within companies where you might like to work. You will need t ...

Katherine wishes to endow a professorship in honor of her

Katherine wishes to endow a professorship in honor of her beloved mycology professor. The University's development office has prepared a proposal for her review, to wit, "The Agnew Chair in Fungus Studies," which will co ...

1 why should researchers never use the one-group

1. Why should researchers never use the one-group pretest-posttest design? 2. What threats to internal validity are present when the nonequivalent control group posttest-only design is used? Which of these threats are el ...

Finance assignmentpoveide a sulotion with it i dont want

Finance Assignment Poveide a sulotion with it I don't want only the answer Suppose that the current spot exchange rate is €1.50/£ and the one-year forward exchange rate is €1.60/£. The one-year interest rate is 5.4% in e ...

  • 4,153,160 Questions Asked
  • 13,132 Experts
  • 2,558,936 Questions Answered

Ask Experts for help!!

Looking for Assignment Help?

Start excelling in your Courses, Get help with Assignment

Write us your full requirement for evaluation and you will receive response within 20 minutes turnaround time.

Ask Now Help with Problems, Get a Best Answer

WalMart Identification of theory and critical discussion

Drawing on the prescribed text and/or relevant academic literature, produce a paper which discusses the nature of group

Section onea in an atwood machine suppose two objects of

SECTION ONE (a) In an Atwood Machine, suppose two objects of unequal mass are hung vertically over a frictionless

Part 1you work in hr for a company that operates a factory

Part 1: You work in HR for a company that operates a factory manufacturing fiberglass. There are several hundred empl

Details on advanced accounting paperthis paper is intended

DETAILS ON ADVANCED ACCOUNTING PAPER This paper is intended for students to apply the theoretical knowledge around ac

Create a provider database and related reports and queries

Create a provider database and related reports and queries to capture contact information for potential PC component pro