Ask Question, Ask an Expert

+1-415-315-9853

info@mywordsolution.com

Ask Basic Finance Expert

You are given the following information about a portfolio you are to manage. For the long-term you are bullish, but you think the market may fall over the next month.

Portfolio Value: $1 million
Portfolio's Beta: 0.86
Current S&P500 Value 990
Anticipated S&P500 915

a. If the anticipated market value materializes, what will be your expected loss on the portfolio?
b. What is the dollar value of your expected loss?
c. For a 75-point drop in the S&P500, by how much does the index change?
d. How many contracts should you buy or sell to hedge your position? (fractions permitted)

 

Basic Finance, Finance

  • Category:- Basic Finance
  • Reference No.:- M929080

Have any Question? 


Related Questions in Basic Finance

1 what are the total assets and net income available to

1. What are the total assets and net income available to common shareholders for McDonald's Corp. (ticker: MCD:US) at the end of each of the last five fiscal years? Read this information from the annual financial stateme ...

The following excerpts are taken from dividend policy

The following excerpts are taken from "Dividend Policy Determinants: An Investigation of the Influences of Stakeholder Theory" by Mark E. Holder, Frederick W. Langrehr, and J. Lawrence Hexter, published in the Autumn 199 ...

1 why is a loan for a condominium more difficult to analyze

1. Why is a loan for a condominium more difficult to analyze than one for a free-standing house? 2. Distinguish between a survey and a legal description. 3. Give an example of a physical characteristic of a house that co ...

1 discuss the pros and cons of using nonhuman animals in

1. Discuss the pros and cons of using nonhuman animals in behavioral research. 2. What are some examples of scientific misconduct?

1 what are four primary reasons that behavioral researchers

1. What are four primary reasons that behavioral researchers use case studies? 2. What is a psychobiography? 3. Why are behavioral scientists reluctant to trust case studies as a means of testing hypotheses?

1 write the general form of a regression equation that has

1. Write the general form of a regression equation that has a single predictor variable. Identify the criterion variable, the predictor variable, the regression constant, and the regression coefficient. 2. A regression e ...

It is sometimes suggested that a floating exchange rate

It is sometimes suggested that a floating exchange rate will adjust to reduce or eliminate any current account deficit. Explain why this adjustment would occur. Why does the exchange rate not always adjust to correct a c ...

The ok railroad needs to raise 95 million for capital

the O.K. Railroad needs to raise $9.5 million for capital improvements. One possibility is a new preferred stock issue - 8 percent dividend, $100 par value - stock that would yield 9 percent to investors. Flotation costs ...

1 discuss some of the advantages and disadvantages of

1. Discuss some of the advantages and disadvantages of setting up production in LCCs. Consider the benefits of market growth and the risk of an example venture. 2. Look at the information on the RDEs discussed in the tex ...

Actions for cash flow and capital budgetingwhat countryies

Actions for 'Cash Flow and Capital Budgeting' What country(ies) do you think is(are) presently attractive for U.S. corporations seeking foreign direct investment opportunities? Take into account any geopolitical/economic ...

  • 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