User Account

All Pages

What rate of return should investors expect on this fund

Assignment Help Finance Basics
Reference no: EM131132508

Assume that you are the portfolio manager of the Coastal Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 10.00% and the risk-free rate is 4.00%. What rate of return should investors expect (and require) on thisfund?

1197_m.jpg

Reference no: EM131132508

Questions Cloud

Determine burrito pension expense for the year : Determine Burrito's pension expense for the year. Prepare the journal entries to record the pension expense and funding for the year.
Prepare a stockholders equity section at 31 december 2010 : Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use J2 for the posting reference.)
Compute brisbane basic and diluted earnings per share : Compute Brisbane's basic and diluted earnings per share for 2006.
Times interest earned ratio the assets turnover ratio : Times Interest Earned Ratio which is (net inc + int exp + tax exp)/int exp. Rec Turnover Ratio which is (net credit sales/avg net rec) "For the average use 2007 & 2006 data. The assets Turnover ratio which is (net sales/avg total assets)
What rate of return should investors expect on this fund : The required rate of return on the market is 10.00% and the risk-free rate is 4.00%. What rate of return should investors expect (and require) on thisfund?
What is the beta of this portfolio : What is the beta of this portfolio? What (specifically) would you do to bring this portfolio back to a target beta of1.10?
Calculate the 13 basic ratios found in the chapter : Using the financial statements for the Niara Calendar Company, calculate the 13 basic ratios found in the chapter.
How much cash was collected from making sales and collecting : Beginning and ending accounts receivable are $76,000 and $42,000, respectively. Sales for the period total $384,000, of which $40,000 was directly for cash. How much cash was collected from making sales and collecting accounts receivable?
What is the cost of equity from retained earnings based : Assume that you are a consultant to Morton Inc. and you have been provided with the following data: D1 = $1.00; P0 = $25.00; and g = 6% (constant). What is the cost of equity from retained earnings based on the DCF approach?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the price of the common stock

Stagnant Iron and Steel pays a $4.20 annual cash dividend. It plans to maintain the dividend at this level for the foreseeable future as no future growth is anticipated. If the required rate of return for the common stock holders is 12%, what is t..

  Calculate the required rate of return for manning enterprise

Manning has a beta of 2, and its realized rate of return has averaged 13% over the last 5 years. Round your answer to two decimal places.

  Assume that the tax on dividends and the tax on capital

1. assume that the tax on dividends and the tax on capital gains is the same. all else equal what would a prudent

  Case study-space age furniture company

Read "Space Age Furniture Company" of your text. Respond to the following and include any Materials Requirement Planning (MRP) calculations:

  What is the final balance in allowance for doubtful accounts

After recording bad debts expense, what is the final balance in the allowance for doubtful accounts?

  Assume that the two-year holding rate of return is 40 the

assume that the two-year holding rate of return is 40. the average rate of return is therefore 20 per year. what is

  The tax shield approach to computing the operating cash

the tax shield approach to computing the operating cash flow given a tax-paying firmi separates cash inflows from cash

  What is the present value of this payment

Roy is going to receive a payment of $5,000 one year from today. He earns an average of 6% on his investments. What is the present value of this payment?

  Build a graph showing how inflation-adjusted investment

build a graph showing how inflation-adjusted investment of $1 in residential real estate changed in 1972-2014 and include it in your deliverable. Note that Fisher equation relates nominal return to real

  Pay an annual dividend

How much would you pay for a share of stock today if you expect it will pay an annual dividend of $2.50 for the next two years and will sell for $58 two years from now?

  Define the three conditions that make up a perfect capital

Define the three conditions that make up a perfect capital market, and then compare and contrast the effects of perfect capital markets and imperfect capital markets on value. Can they create or destroy value? Explain.

  Calculate the future value if the investment

Find the future value one year from now of a $7,000 investment at a 3 percent annual compound interest rate. Also calculate the future value if the investment is made for two years.

Free Assignment Quote

Assured A++ Grade

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!

Submit Assignment

Academics

Major Subjects

Majors

Get In Touch

whatsapp: +1-415-670-9521

Phone: +1-415-670-9521

Email: [email protected]

TERMS & POLICIES

HELP & SUPPORT

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd