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 are constructing a portfolio of two assets, Asset A and Asset B. The expected returns of the assets are 10 percent and 16 percent, respectively. The standard deviations of the assets are 37 percent and 45 percent, respectively. The correlation between the two assets is 0.57 and the risk-free rate is 4.1 percent. What is the optimal Sharpe ratio in a portfolio of the two assets? What is the smallest expected loss for this portfolio over the coming year with a probability of 2.5 percent? (Negative amounts should be indicated by a minus sign. Round your Sharpe ratio answer to 4 decimal place & Probability answer to 2 decimal places. Omit the "%" sign in your response.)
Sharpe ratio
Smallest expected loss %
Jordan Enterprises is considering a capital expenditure that requires an initial investment of ?$48,000 and returns? after-tax cash inflows of ?$8,144 per year for 10 years. The firm has a maximum acceptable payback period of 8 years.
You are looking at a one-year loan of $13,000. The interest rate is quoted as 9 percent plus three points. A point on a loan is simply 1 percent (one percentage point) of the loan amount. Quotes similar to this one are common with home mortgages. Wha..
Suppose that a bank has $5 billion of one-year loans and $35 billion of five-year loans. These are financed by $35 billion of one-year deposits and $5 billion of five-year deposits. The bank has equity totaling $2 billion and its return on equity is ..
Donald and Gabby are going to invest some of their money for two years from January 1, 2016 to December 31, 2017. Use 2016 rates, etc for both 2016 and 2017. Their taxable income without any return is $200,000. They will invest $55,720 for two years,..
You are considering two equally risky annuities, each of which pays $5,000 per year for 10 years. Investment ORD is an ordinary (or deferred) annuity, while Investment DUE is an annuity due. If the going rate of interest decreases from 10% to 0%, the..
It is estimated that the annual sales of an energy saving device will be 25,000 the first year and increase by 10,000 per year until 55,000 units are sold during the fourth year. If the interest rate is 9%, which proposal should be accepted for a 10..
Assume that a firm buys a depreciable asset for $6 million and its salvage value is $0 after a depreciable life of 12 years. Using the SLN and DDB functions, determine the depreciation expense for each of the 12 years under the straight-line (SLN) an..
The Firm's cost of capital may also be referred to as the firm's opportunity cost of capital. Corporations have two costs of common equity, one for retained earnings and one if the company issues new stock. A security with a reasonably stable price w..
Laverne Industries stock has a beta of 1.35. The company just paid a dividend of $.85, and the dividends are expected to grow at 5 percent. The expected return of the market is 11.5 percent, and Treasury bills are yielding 5 percent. The most recent ..
1. the roe ratio tells us how much investors are willing to pay for a dollar of accounting book value. in general
Over the past 5 years, NBA’s common stock earnings per share have grown from $0.62 to $0.91. If an investor in NBA stock is assumed to have a required rate of return of 14%, what is the estimated value of NBA if its current dividend is $0.12? Assume ..
The market capitalization rate for Admiral Motors Company is 10%. Its expected ROE is 15% and its expected EPS is $7. If the firm’s plowback ratio is 50%. Calculate the growth rate. What will be its P/E ratio?
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