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 run a $100M stock portfolio that has a beta of 1.50. The S&P 500 Index is currently at 1,600 and you expect the general market to be very volatile over the next six months. You are expecting to capture an alpha of 0.5% every month. The risk free rate is a monthly 0.5%. The return on the portfolio is expected to follow the CAPM formula. Assume there are no idiosyncratic factors affecting the stock price. That is you do not need to consider an error factor (e) in your results.
a) Using six month S&P 500 futures that have a multiplier of $250, how many 6 month future contracts would you need to trade to fully hedge the portfolio over 2 months?
b) If the S&P 500 Index was trading at 1,800 at the end of 2 months, show the detailed results of the hedged portfolio constructed in a) above
A project has an initial cost of $140,000 and an estimated salvage value after 16years of$80000. Estimated average annual recipts are $26,000. Estimated average annual disbursement are $16,000. Assuming that annual receipts and disbursement will be u..
Aspen's Distributors has a cost of equity of 13.84% and an unlevered cost of capital of 12%. The company has $5,000 in debt that is selling at par value. The levered value of the firm is $12,000 and the tax rate is 34%. What is the pre-tax cost of de..
Corben Inc. has a successful brand with the name Crunz. The market size in which Crunz competes is $4 billion, and Crunz has generated sales of $400 million. It has a contribution margin of 30% and annual fixed costs of $20 million. Corben Inc. is th..
Moonscape has just completed an initial public offering. The firm sold 2 million shares at an offer price of $8 per share. The underwriting spread was $.6 a share. The price of the stock closed at $12 per share at the end of the first day of trading...
A couple borrows $935,000 for 7 years for the purchase of a vacation home at an interest rate of 7%. The loan requires that the interest and principal be paid in equal, annual payments. The interest is determined on the declining balance that is owed..
Nick an dSheila Preston are married and have purchased a comprehensive major medical policy which covers them and their two sons, Wally and Brent.
What is dollar cost averaging? If you were an astute investor at timing market moves, would you want to use dollar cost averaging?
Assume the risk free rate is 6percentage and the market risk premium is 6 percentages. The stock of physician care network is (PCN) has a beta of 1.5. The last dividend paid by PCN (D0) was $2 per share.
Discuss the relationship between net income and cash flow from operations and between cash flows from operation investing, and financing activities for the firm over the three year period.
process of performing financial analysis of a public companygeneral component---no more than one paragraph describing
Prepare a statement of cash flows for 2013, using the indirect method. Assume that current assets (excluding cash) and current liabilities have remained the same on December 31, 2013.
Big Stevie's is the maker of swizzle sticks; they are considering the purchase of a new plastic stamping machine. This investment requires an initial outlay of $90,000 and will generate net cash inflows of $21,000 a year for 9 years.
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