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!
Last month, you found the tangency portfolio and constructed your optimal complete portfolio, which is a mix of the tangency portfolio and the risk-free asset. Today new information about the stock market is released and affects the moments (mean, variance, and covariance) of all stock returns. You update your belief on the moments, find the new tangency portfolio, and re-construct your optimal complete portfolio, given new information. The risk premium of the updated tangency portfolio is 1.42 times the previous one, and the volatility of the updated tangency portfolio is 1.1 times the previous one due to the new information. If the weight on the tangency portfolio was 0.6 and 0.4 on the risk-free asset in your previous optimal complete portfolio, what is the weight on the updated tangency portfolio in your re-constructed optimal complete portfolio? Assume your attitude to risk (= price of risk) remains the same. Type your answer as a decimal after rounding the number to the nearest basis point. For example, type 0.2157 if you think the answer is 21.568%.
Based on the data contained in Table A, what is the break-even point in units produced and sold?
What is the effective annual rate (EAR) of this credit card?
Bear Co. is growing quickly. Dividends are expected to grow at a rate of 25 percent for the next three years, with the growth rate falling of to a constant 5 percent thereafter. If the required return is 15 percent and the company just paid a $2.88 d..
Assume that you are considering the purchase of a 20-year, non callable bond with an annual coupon rate of 9.5%. The bond has a face value of $1,000, and it makes semi annual interest payments. If you require an 8.4% nominal yield to maturity on this..
Thalin Inc. has decided to extend its current product line. To finance the project, the firms is considering issuing a ten-year, 10-percent coupon bond. The firm has made public that its target debt-to-equity ratio is 30-percent is not going to chang..
Johnson Family Care Inc. is a large ambulatory care center that provides comprehensive 24-hour primary and specialty care to a large suburban population in Pennsylvania. Johnson uses a straight-line method to calculate book depreciation and pays tax..
A stock had returns of 7 percent, –5 percent, 2 percent, and 10 percent over the past 4 years. What is the standard deviation of this stock for the past four years?
Under a system of floating exchange rates, which of the following conditions would tend to cause the Canadian dollar to appreciate in value against the U.S. dollar?
If Microsoft stockholders expect either a? 25% return or a? 2% return, each with a? 50% probability, and Apple Computer shareholders expect a? 10% return with? certainty, what is the expected return from a portfolio comprised of equal amounts of stoc..
An analyst expects Aquinas Research Inc. to pay its first dividend of $0.50 per share five years from today. She expects future dividends to then grow indefinitely at a constant rate of 8.5% per year. Assume the risk-free rate is 3.9%, market risk pr..
What is the delta of a short position in 4,000 European call options on gold futures? The options mature in eight months, and the futures contract underlying the option matures in nine months. The current nine-month futures price is $10 per ounce, th..
Bottoms Up Diaper Service is considering the purchase of a new industrial washer. It can purchase the washer for $3,300 and sell its old washer for $900. The new washer will last for 6 years and save $700 a year in expenses. The opportunity cost of c..
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