Population variance for the securities

Assignment Help Finance Basics
Reference no: EM131100962

The investment department of Big Bucks Businesses (BBB) is examining several different strategies. The forecasting department has indicated that each economic state is equally likely to occur. The estimated return for each security under each state is below. Tarragon Inc. manufactures decorative bottles, and Vintner Corp. is a mining firm. The following table summarizes the data:

Economic State

Tarragon

Vintner

Recession

-11%

4%

Average

20%

8%

Boom

40%

6%

Sara believes that BBB should invest 80% in Tarragon and 20% in Vintner. What is the return and variance on this portfolio? Use the population variance for the securities.

Reference no: EM131100962

Questions Cloud

Calculate the required open-loop gain of the op amp : calculate the required open-loop gain of the op amp.
Which hopes to rival holiday inn on the national scene : A summary of the balance sheet of Travelers Inn Inc. (TII), a company which was formed by merging a number of regional motel chains and which hopes to rival Holiday Inn on the national scene, is shown in the table: Travelers Inn: December 31, 2004 (M..
Find two examples of psychometric measurement tools : Psychometric Tools Find two examples of psychometric measurement tools, as listed on page 288 that have been used in actual research. Critique them using the criteria listed on page 289 to determine how they avoid or are subject to bias.
Shares of common stock outstanding : It has 900 million shares of common stock outstanding, and its stock price is $33 per share. What is Jaster's market/book ratio? Round your answer to two decimal places
Population variance for the securities : Sara believes that BBB should invest 80% in Tarragon and 20% in Vintner. What is the return and variance on this portfolio? Use the population variance for the securities.
Use your intelligence to explain how topics : How can we use some of the measurement methods we've learned this term to make better decisions in business and in life? Sometimes it's hard for students to draw the linkages between topics examined in quantitatively-oriented courses to the "real ..
Discuss how insertion sort and selection sort works : Pick one of the following sorting algorithms and discuss how it works, its main features including performance characteristics: Insertion Sort, Selection Sort, Bubble Sort, Heap Sort, Merge Sort, Quick Sort.
Determine the gain error : An inverting amplifier must provide an input impedance of approximately 10 k Ω and a nominal gain of 4. If the op amp exhibits an open-loop gain of 1000 and an output impedance of 1 k Ω, determine the gain error.
Plan to deposit an additional : You have $38,630.60 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $200,000. You expect to earn 11% annually on the account.

Reviews

Write a Review

Finance Basics Questions & Answers

  Assist in a worldwide economic recovery

Summarize in your own words which institutions have the most worldwide impact in our current economic environment. Why? Which are best posed to assist in a worldwide economic recovery? Has it been effective? Why or why not?

  What is the wacc after the new debt issue

The company is considering a new issue of perpetual debts of $1,000,000 to buy back its stocks. The new debts will have the same yield as the existing debts. The tax rate is of 30%.

  Complete a dupont analysis by calculating the roe roa

Complete a DuPont analysis by calculating the ROE, ROA, the profit margin, total asset turnover, and equity multiplier

  Internal and external pay equity

Explain the importance of managing pay equity (both internal and external) and the consequences for not doing so.

  Financial statement analysis our purpose this week learning

financial statement analysis our purpose this week learning how to measure the performance of companies by analyzing

  Sosa could borrow 100000 from its bank to finance the

sosa excavating inc. is purchasing a bulldozer. the equipment has a price of 100000. the manufacturer has offered a

  Pinkerton interactive graphic systems

You're a financial analyst at Pinkerton Interactive Graphic Systems (PIGS), a successful entrant in a new and rapidly growing field. As in most new fields, however, rapid growth is anything but ensured, and PIGS's future performance is uncertain.

  What is the most important characteristics

What is the most important characteristics in determining the variance of well-deserved portfolio is the variance of the individual assets in the portfolio.is this statement true or false? explain

  How much cash will be needed to pay the dividend

How much cash will be needed to pay the dividend?

  Supply and demand price rises

Why do you believe that it is significant for managers to understand both short run and long run supply & demand? Cite one hypothetical or real life example that illustrates response.

  Normally acquiring firm pays price which is a premium above

1. at a firms quarterly dividend meeting held april 9 the directors declared a 0.50 per share cash dividend for the

  Pick a public company that has recently

Pick a public company that has recently (in the past 3-4 years) been featured prominently in the news as having experienced fraud and/or gross negligence

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!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd