Reference no: EM13965492
Please Answer The Following Four Questions
Problem 1. Calculate the return for each of these investments (capital gain/loss plus dividend).
a) My portfolio ends the year with a value of $12.72 million after paying dividends at the end of the year to the value of $255,000. The value of the fund at the beginning of the year was $12.13 million.
b) At the same time the All Ordinaries Index ended the year at 5695 after starting at 5226.
c) A share in BHP was selling for $23.45 at the beginning of the year and selling for $27.42 at the end of the year after paying a dividend of $1.13.
Problem 2. A perpetuity with the first annual cash flow paid at the beginning of year 4 is equivalent to receiving $100,000 in 15 years time. Assume that the perpetuity and the lump sum are of equivalent risk and that j2 = 11% pa is the appropriate interest rate. How much is the annual cash flow associated with the perpetuity?
(Accurate to the nearest dollar)
Problem 3. Discus the implications of the empirical evidence on market efficiency for (a) technical analysis (b) fundamental analysis
Problem 4: The standard deviations of returns on assets A and B are 12 per cent and 6 per cent, respectively. A portfolio is constructed consisting of 30 per cent in Asset A and 70 per cent in Asset B. Calculate the portfolio standard deviation if the correlation of returns between the two assets is:
1. 1
2. 0.5
3. 0
4. –1
Comment on your answers.
Please answer questions above in word and Excel file, I need full computation in Excel file and all steps to follow your answer in word file.
Please make sure to include all necessary formulas in word file.
|
Why is team work valuable to the human side of management
: Why is team work valuable to the human side of management? Why is structured organization valuable to the human side of management? Why is motivating valuable to the human side of management?
|
|
Collection of popular ERP system used by many organizations
: Microsoft Dynamics is a collection of popular ERP system used by many organizations. Dynamics offer five primary products, each includes one or more model. The primary products are: Microsoft Dynamics AX, Microsoft Dynamics GP, Microsoft Dynamics NAV..
|
|
What is the required cycle time for such a system
: An output of 1,000 units per shift (10.00 hours) is desired for a new processing system. The system requires product to pass through four stations where the work content at each station is 30 seconds. What is the required cycle time for such a system..
|
|
Preliminary development of new drug-code-named clearview
: Vision Research has completed preliminary development of a new drug, code-named ClearView that corrects nearsightedness. This revolutionary new product could be completely developed and tested in time for release next year if the FDA approves the pro..
|
|
How much is annual cash flow associated with the perpetuity
: A perpetuity with the first annual cash flow paid at the beginning of year 4 is equivalent to receiving $100,000 in 15 years time. Assume that the perpetuity and the lump sum are of equivalent risk and that j2 = 11% pa is the appropriate interest rat..
|
|
Poisson distributed-Compute L-Lq-W and Wq
: The College Avenue Sub Shop is located in a small college town. Virtually all of its phone delivery orders are in the evening, between 5:00 PM and 1:00 AM, so the shop has a delivery person for that time period. It receives an average of about 3 orde..
|
|
An abstract and literature review on the opportunities
: An abstract and literature review on the opportunities and the challenges confronting minority owned businesses employing a diverse workforce in the United States and globally and the impact and of diversity on such businesses from 1988 to the presen..
|
|
How granting credit to customers affects a firms cash flow
: Discuss how granting credit to customers affects a firm's cash flow. Discuss why the discounted cash flow technique provides the best method for making capital budgeting decisions.
|
|
How much is annual cash flow associated with the perpetuity
: A perpetuity with the first annual cash flow paid at the beginning of year 5 is equivalent to receiving $109,000 in 18 years' time. Assume that the perpetuity and the lump sum are of equivalent risk and that j12 = 14.32% pa is the appropriate interes..
|