Reference no: EM131728342
1. Suppose you invest $7,000 in Stock A and $3,000 in Stock B. The variance of Stock A is 50 percent, the variance of Stock B is also 50 percent, and the covariance between the two stocks is 0 percent. What is the variance of your portfolio in percent?
2. Suppose that you currently have $250,000 invested in a portfolio with an expected return of 12 percent and a standard deviation of 10 percent. The risk-free rate of interest is 5 percent.
The Sharpe ratio for your portfolio is:
3. You are an active portfolio manager for a large hedge fund. The overall return on your portfolio for the year is 25 percent. What is your fund's alpha if the the risk-free rate is 5 percent, the Beta for you portfolio is 1.50 and the market risk premium is 10 percent?
4. Suppose an investment has a 50 percent chance to have a 40 percent return and a 50 percent chance to have a 20 percent return. What is the expected return for this investment?
5. Suppose an investment has a 50 percent chance to have a 40 percent return and a 50 percent chance to have a 20 percent return. What is the standard deviation of the return for this investment?
6. Consider two stocks X and Y with the following expected returns (in percent) and standard deviations. How much of your $10,000 total investment should you invest in stock Y if you would like a portfolio with an expected return of 18 percent?
StockExpected return Standard deviation
X 10 25
Y 20 50
|
Discuss the elements of planning that are used by company
: Discuss the elements of planning, control, and decision making that are used by that company.
|
|
Problem regarding the liquidity analysis
: The Crown Carpet Company has $3,000,000 in cash and a total of $12,000,000 in current assets. The firm's current liabilities equal $6,000,000
|
|
How much should equity be after making the adjustment
: A firm reports assets of $7,500 on the Income Statement. If the tax rate is 25%, then how much should equity be after making the adjustment
|
|
Adjusted closing prices on stock
: What is the total return on your portfolio given the following adjusted closing prices on each stock (please enter the answer in percent format
|
|
What is the variance of portfolio in percent
: The variance of Stock A is 50 percent, the variance of Stock B is also 50 percent, and the covariance between the two stocks is 0 percent.
|
|
Create a flyer for a human resources department
: You will use the website smore.com to create a flyer for a human resources department briefing. Make sure to discuss in your flyer
|
|
Purpose of preparing for and dealing
: Identify and describe the technology alternatives and implementation initiatives you would recommend to your organization's technology planning committee
|
|
How much should equity be after making the adjustment
: A firm reports assets of $7,500 on the Income Statement. If the tax rate is 25%, then how much should equity be after making the adjustment
|
|
What security or networking mechanisms
: What security or networking mechanisms would you use to protect any Intranet servers you had? Why and how would that mechanism offer protection?
|