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!
You have collected 6 years of monthly data on return of funds ABC and XYZ as well as on S&P/TSX composite index and the government short-term bills (risk-free). You have run two (excess return) index-model regressions for the two bonds and the results are as follows:
for ABC
rp- rf= .017 +1.2( rM- rf) + 2.3( rM-rf)^2 R^2 =0.92
for XYZ
rp - rf= 0.11+1.6(rM- rf) + 1.0( rM-rf)^2 R^2=0.75
All regression coefficients are statistically significant at 1% confidence interval.
a. Which fund has a higher systematic risk? Why?
b. Which fund has a higher residual risk? Why?
c. Which fund has a higher abnormal return? Why?
d. The risk-free rate over the period was 5 percent, and the market’s average return was 15 percent. Standard deviation of excess return for ABC and XYZ are 20% and 25%. Calculate Sharpe and Treynor’s measure for each fund.
Portman industries just paid a dividend of $2.40 per share. The company expects the coming year to be very profitable, and its dividend is expected to grow by 12.00% over the next year. After teh next year, though, Portman's dividend is expected to g..
Infinity Designs, an interior design company, has experienced a drop in business due to an increase in interest rates and a corresponding slowdown in remodeling projects. Calculate the impact of the exhibit on company profit.
The Omega Venture Group needs to borrow to Finance a project. Repayment of the loan involves payments of $5660 at the end of every six months for six years. No payments are to be made during the development period of two years. Interest is 9% compoun..
During your review of the sales accounts at 120340 Ontario Inc., you enquired of management about sales to customer account 23-524. The account accumulates sales to a related company. The customer is a related company pays more than market value for ..
What is the stock’s intrinsic value if g= 20% for 3 years before achieving long-term growth of 5%. Its required rate of return is 10%. Last dividend was $2. What is its terminal price?
What is the expected value of the investment in U.S. dollars? b) What is operational exposure? Discuss the factors that may influence the size of a company's operating exposure?
You buy a car today for $29,000. If you finance it with a 6% APR, 4 year loan, what is the difference in your payments if you agree to pay at the beginning of each month rather than at the end? Assume monthly compounding.
Clark Communications has a capital structure that consists of 70% common stock and 30% long-term debt. In order to calculate Clark's WACC, an analyst has accumulated the following information: The company currently has a 30-year bond issue outstandin..
Future value: annuity versus annuity due. What's the future value of a 11%, 5-year ordinary annuity that pays $700 each year? If this was an annuity due, what would its future value be?
Give an example each of a situation where you would prefer a futures contract over or forward contract and conversely when you would prefere a forward contract over futures contract for hedging purposes. Give reasons.
The beta associated with a risk free asset ___.
If a company's required rate of return is 22%, its average market return is 18%, and the interest yield on 10-year US Treasury Bonds is 4%, what is the company’s Beta coefficient?
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