Summarise the risky assets risk return profile

Assignment Help Financial Management
Reference no: EM131493110

Parts A and B of this assignment MUST be completed on an Excel Spreadsheet.

Part A:

The use of an accurate Excel (for Windows) model:

1. The setting and presentation.
- an input section which contains all variables crucial to the analysis.
- an appropriately designed output section.
- Efficient use of the spreadsheet functions and facilities: formulas, cell names, documentation, all variables in "input" section, etc.

2. Accuracy of calculations and Analysis.

Part B:

State
of
Economy

Measure
of
Probability

Market
Return

Asset
A

Asset
B

Asset

C

Asset

D

Asset
E

Asset
F

 

%

%

%

%

%

%

%

%

Worst

0.100

0.05

0.02

-0.01

0.03

0.04

0.06

0.01

Bad

0.200

0.08

0.06

0.02

0.08

0.05

0.08

0.04

Fair

0.300

0.12

0.07

0.05

0.12

0.1

0.16

0.07

Good

0.250

0.15

0.08

0.06

0.16

0.15

0.18

0.1

Best

0.150

0.17

0.1

0.12

0.17

0.16

0.2

0.12

a) Calculate for each asset whether it provides an excess return. You will need to determine firstly its expected value and then compare it to its estimated CAPM figure.

b) Summarise the risky asset's risk return profile (also calculate for each asset its Coefficient of Variation)

Reference no: EM131493110

Questions Cloud

Draw and explain the effect on the isocost curve : When there are 2 inputs K, L, given the price of capital (PK)= 10 and price of labour (PL)=20. Total Expenditure C=100. Draw and explain the effect.
Bond that pays a coupon rate : What is the yield of maturity of a 4-year bond that pays a coupon rate of 6.23 percent per year, has a $1,000 par value, and is currently priced at $990?
Write a three page paper on social networking : Write a three page paper on Social Networking. what it is, how it is used, and potential positive and negative impacts on individuals and on society.
Explain the low benefit and cost of pollution control : Assume there are two types of communities in the US, those in which there is a high benefit of pollution control and a high cost of pollustion control.
Summarise the risky assets risk return profile : Calculate for each asset whether it provides an excess return. You will need to determine firstly its expected value and then compare it to its estimated CAPM figure.
Annual coupon payment : Consider a 7 year bond with a face value of $1,000 and with an annual coupon payment of $100. What is the market value of this bond if the appropriate required.
What is the level of equilibrium income : Suppose that the behavior of households and firms in an economy is determined by the following equations.
Record your new severity and likelihood ratings : Record your new severity and likelihood ratings and justifications below, being sure to note if the overall risk rating for the finding has changed.
What are the ethical issues related to the competency : What are the ethical issues related to the competency and decision-making capacity of the client while making the health care decisions

Reviews

inf1493110

6/5/2017 4:17:59 AM

Thanks for this calculative assignment, now i can say whether it is calculation based assignment or writing assignment you guys know your duty very well. you have really good experts with you, that till now provided me very good job. thanks you once again for such help.

len1493110

5/12/2017 3:52:43 AM

MUST be completed on an Excel Spreadsheet. The use of an accurate Excel (for Windows) model: 1. The setting and presentation. ? an input section which contains all variables crucial to the analysis. ? an appropriately designed output section. ? Efficient use of the spreadsheet functions and facilities: formulas, cell names, documentation, all variables in "input" section, etc. 2. Accuracy of calculations and Analysis.

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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