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 devise a register-allocation strategy on the assumption

1. Devise a register-allocation strategy on the assumption that we automatically store all registers on the stack before each procedure call and restore them after the return. 2. Construct the register-interference graph ...

Check and revise sentences for parallel structuredetermine

Check and revise sentences for parallel structure Determine whether the following sentences use parallel structure. Revise sentences as needed to make the structure parallel. a. The executive at Ernst & Young writes repo ...

We are going through financial crisis seven years have

We are going through financial crisis. Seven years have passed and we are still in recovery stage. Based on the analysis in the class, can you suggest and elaborate an alternative way to deal with the financial crisis?

Each of the following studies examines the relationship

Each of the following studies examines the relationship between the quality of breakfast and academic performance for third-grade children. Identify which is correlational, which is experimental, and which is nonexperime ...

Find the present value of an ordinary annuity with deposits

Find the present value of an ordinary annuity with deposits of $8680 quarterly for 5 years at 8.4% compounded quarterly. What is the present value?

Budgetary process1 why is an audit considered to be the

Budgetary process 1. Why is an audit considered to be the final phase of a budgetary process? 2. What organizations undertake governmental program evaluations, and why do they do it? 3. Are program evaluations more likel ...

What are the objectives of the cash management functionwhat

What are the objectives of the cash management function? What is cash management essentially concerned with? How can a centralized cash management system be beneficial to the MNC?

1 distinguish between concurrent and predictive validity do

1. Distinguish between concurrent and predictive validity. Do these terms refer to types of construct validity or criterion-related validity? 2. How can we tell whether a particular measure is biased against a particular ...

Company checkpoint issued bonds at a discount where each

Company Checkpoint issued bonds at a discount where each $1,000 face(par) bond was issued for $900. The coupon rate is stated as 3.75%. Company Delta issued its bonds at par (each $1,000 of bond was issued for $1,000) wi ...

What is the firms goal with regard to cash collections

What is the firm's goal with regard to cash collections? Describe each of the following types of collection systems: a. Field-banking system b. Mail-based collection system c. Electronic system.

  • 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

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

Describe what you learned about the impact of economic

Describe what you learned about the impact of economic, social, and demographic trends affecting the US labor environmen