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 gather the following data: ABC has a CAPM beta of 0.75 and an annual standard deviation of returns equal to 70%. The S&P 500 has an annual standard deviation of returns equal to 17%, and we can use the S&P 500 as a proxy for the market portfolio in this problem. The risk free rate is 0.6%. The expected return on the S&P 500 is 9% per year.
a) What would the r-squared be if you ran the CAPM regression on ABC?
b) If the average return on ABC has been 10% per year, what is the estimated CAPM alpha?
c) If the CAPM is true, and the S&P’s returns were -4% in January 2014, what is the expected return on ABC during that month?
Bill currently owns 100 shares of Taliant Inc. valued at $10 each and Taliant has just declared a 10% stock dividend. Prior to the stock dividend there were 2,000 shares outstanding. How has the value of Bill’s investment changed and what is the stoc..
For a U.K. firm to hedge a ?100,000 payable using options, there are two possible ways the firm can approach this. Can you please provide a description of each of the two possible hedging approaches?
Calculate the difference between the future value of the following investment using annual and daily compounding: (a) Present Value: $20,000, (b) Interest Rate: 6%, and (c) Number of Periods: 30 Years.
What would be the tax liability for a single taxpayer who has a gross income of $39,500? (Hint: Use Table 4-2, and don't forget to first subtract the value of a standard deduction and one exemption.) Round your answer to the nearest dollar.
The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making the calculations, she assumes the aftertax cost of debt is at least 1 percent less than that for preferred stock. Compute ..
Calculate the amount today that is equivalent to $150 at the end of year 1, $450 at the end of year 2, and $300 at the end of year 3, given a discount rate of 10%. What is the amount of the equal annual installments for a 10-year, $10,000 loan with a..
Describe two (2) financial career options that an individual with a finance education might pursue and explain the value that such a position adds to a company. Explain the essential skills that would make a person successful in each of the described..
Tri-coat Paints has a current market value of $43 per share with earnings of $2.14. What is the present value of its growth opportunities (PVGO) if the required return is 5%?
Suppose that the index model for stocks A and B is estimated from excess returns with the following results: RA = 1.6% + 0.70RM + eA RB = –1.8% + 0.9RM + eB σM = 22%; R-squareA = 0.20; R-squareB = 0.15 what is the standard deviation of each stock?
Suppose you make 30 annual investments in a fund that pays 4% compounded annually. If your first deposit is $9,000 and each successive deposit is 4% greater than the preceding deposit, how much will be in the fund immediately after the 30th deposit?
XYZ Corporation has a British supplier and an Argentinian buyer. Transactions with his UK supplier are denominated in UK pounds and transactions with his Argentinian buyer are denominated in Argentinian pesos. The UK supplier gives XYZ 30 days from t..
Which of the following bonds would have the greatest percentage increase in value if all interest rates in the economy fall by 1%?
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