User Account

All Pages

Eliminate all systematic risk in the portfolio

Assignment Help Risk Management
Reference no: EM13208667

A company has $30 million portfolio with a beta of 1.5. The futures price for a contract on the S&P index is 900. Futures contracts on $250 times the index can be traded. What trade is necessary to archive(a) eliminate all systematic risk in the portfolio,(b) reduce the beta to 1.0, or(c) increase beta to 2.0.

Reference no: EM13208667

Questions Cloud

What operations can be used on pointer variables : In C++, what operations can be used on pointer variables? Why use these operations?
Calculate the total wages for an employee : Design and create a program to calculate the total wages for an employee. An employee is paid $10 per hour for the first 40 hours. The employee is paid $15 per hour for every hour greater than 40 hours and up to 50 hours.
What is the break-even level of earnings under the program : What is the breakeven level of hour of work under the program I have gotten help on the first part of the question and found that the break even level of earnings was $140 and he would work for 20 hours/week.The other part
Write a complete main method that would print your last name : Suppose your name was George Gershwin. Write a complete main method that would print your last name, followed by a comma, followed by a space and your first name. Question 2 Declare a variable named myMenu suitable for holding references to Menu o..
Eliminate all systematic risk in the portfolio : What trade is necessary to archive(a) eliminate all systematic risk in the portfolio,(b) reduce the beta to 1.0, or(c) increase beta to 2.0.
Explain the acetone-bisulfite addition compound : What gas was evolved when you treated the acetone-bisulfite addition compound with hydrochloric acid?
Write a programme that force the player-controlled class : write a programme that Force the player-controlled class Dog to fall asleep when its energy reaches 0, and once it wakes up, set its energy to 100.
Write a loop that subtracts one from the class : 1- Write a loop that subtracts one from the Class Dog's energy for every 30 steps that the Dog takes. 2- Make the player-controlled Class Dog move more slowly whenever the method isTired returns a value of true.
Explain what will be the speed of the electrons ejected : the ejected electrons have the speed v=1.06x10^6 m/s. What will be the speed of the electrons ejected from the same metal by a light of wavelength 180nm?

Reviews

Write a Review

Risk Management Questions & Answers

  Compute the dollar value of the futures contract notional

compute the dollar value of the futures contract notional and the number of contracts to buy/sell for optimal protection

  How much would you pay for this business today

How much would you pay for this business today assuming you needed a 18% return to make this deal and What would Mrs. Beach have to deposit if she were to use high quality corporate bonds an earned an average rate of return of 7%.

  Discuss the concept of risk

What are the sources of error in estimating the value of a share of stock?Which is most likely to be accurate: the computed price of a share of stock or the computed price of a bond?

  Evalaute the theoretical option price

Evalaute the theoretical option price

  Discuss concepts of risk and management

Risk lies at all levels of business activity. There are many different kinds of risks within an management as well as ways to manage risks.

  What are the forward price and the initial value

What are the forward price and the initial value of the forward contract and what are the forward price and the value of the forward contract?

  Analyze risk management processes

Examine the nature of risk within a firm through losses and opportunities with a focus on the mitigation of risk and analyze risk management processes used to reduce risk exposures such as life, health, retirement, property and liability

  Analysis to develop an executive summary of the findings

Use this analysis to develop an executive summary of the findings of your group and one recommendation. This summary will be presented to the mayor of New Orleans.

  How the inflation rate would affect the return

Explain how this leader in your firm can speculate on the belief that the euro will be $1.41 in 12 months and calculate the amount of profit that can be earned and the percentage return achieved.

  Discuss role of risk assessment

The financial information has been dominated currently by stories of financial institutions that have mis-measured risk as part of subprime mortgage crisis.

  Discuss the risk management process

Discuss the risk management process, as it applies to the firm and identify loss types for pure risks, and for damage to assets.  Discuss direct and indirect losses.

  Overestimate the value of high-risk projects

Cost of Capital Suppose a firm uses its company cost of capital to evaluate all projects. Will it underestimate or overestimate the value of high-risk projects?

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