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!
An investor can design a risky portfolio based on two stocks, A and B. Stock A has an expected return on 21% and a standard deviation of return of 39%. Stock B has an expected return of 14% and a standard deviation of return of 20%. The correlation coefficient between the returns of A and B is 0.4. The T-Bill rate of return is 5%.
A) The portion of the optimal risky portfolio that should be invested in stock B is what?
B) What is the expected return on the optimal risky portfolio?
C) Investors wants to have an expected return of 10% for a complete portfolio. What proportion of his investment is in T-Bills?
D) What proportion of the investor's complete portfolio is in stock A and in stock B?
Deng Inc. has a target debt-equity ratio of 0.4. It's before-tax cost of equity is 16 % and it's before-tax cost of debt is 8%. If the tax rate is 32%, what is Deng's WACC?
Calculate a table of interest rates based on the following information: The pure interest rate is 1.6% Inflation expectations for year 1 = 3%, year 2 =3.5%, years 3-5 =5% The default risk is .1% for year one and increases by .2% over each year Liquid..
Viking Manufacturing, Inc. currently begins each sales cycle with 12,500 vacuum cleaners in stock. This stock is depleted at the end of each sales cycle and then reordered. The firm currently places 42 orders per year. What is the total cost of curre..
Perform a Breakeven analysis to find out at what hours of operations the two motor costs are the same.
What is the relationship between discounting and compounding? What is the relationship between the present-value factor and the annuity present-value factor? What is an annuity due? How does this differ from an ordinary annuity?
On January 1st of this year, Linda sold a piece of land that she had bought years earlier to George. Linda's basis in the land was $75,000 and she sold it for $100,000. His first installment payment was due and payable December 31st of this year. Lin..
Ten-year zero coupon bonds issued by the U.S. Treasury have a face value of $1,000 and interest is compounded semiannually. If similar bonds in the market yield 9.17 percent, what is the value of these bonds?
What's the present value of $10,00 discounted back 5 years if the appropriate interest rate is 6%, compounded monthly?
Suppose you are considering acquiring a house by assuming the remainder of the existing 30-year mortgage on the property. what price are you effectively paying for the house if your bank is quoting an interest rate of 0.5208 % per month on similar lo..
In class the equation for the valuation of a put option was derived. This is the expected value of the present value of the (nonnegative) payoff obtained in exercising the option. This is the Black-Scholes-Merton equation. Mimicking that derivation, ..
Flashback Corporation is evaluating an extra dividend versus a share repurchase. In either case, $32,500 would be spent. Current earnings are $2.90 per share, and the stock currently sells for $81 per share. There are 5,000 shares outstanding. Ignore..
LZ Corporation uses a fiscal year ending September 30. The controller filed LZ's Form 1120 for the year ending September 30, 2014, on October 23, 2014. a. What is the last day on which the IRS may assess additional tax for this fiscal year? b. How wo..
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