What rate of return should investors expect on this fund

Assignment Help Finance Basics
Reference no: EM131132508

Assume that you are the portfolio manager of the Coastal Fund, a $3 million hedge fund that contains the following stocks. The required rate of return on the market is 10.00% and the risk-free rate is 4.00%. What rate of return should investors expect (and require) on thisfund?

1197_m.jpg

Reference no: EM131132508

Questions Cloud

Determine burrito pension expense for the year : Determine Burrito's pension expense for the year. Prepare the journal entries to record the pension expense and funding for the year.
Prepare a stockholders equity section at 31 december 2010 : Enter the beginning balances in the accounts, and post the journal entries to the stockholders' equity accounts. (Use J2 for the posting reference.)
Compute brisbane basic and diluted earnings per share : Compute Brisbane's basic and diluted earnings per share for 2006.
Times interest earned ratio the assets turnover ratio : Times Interest Earned Ratio which is (net inc + int exp + tax exp)/int exp. Rec Turnover Ratio which is (net credit sales/avg net rec) "For the average use 2007 & 2006 data. The assets Turnover ratio which is (net sales/avg total assets)
What rate of return should investors expect on this fund : The required rate of return on the market is 10.00% and the risk-free rate is 4.00%. What rate of return should investors expect (and require) on thisfund?
What is the beta of this portfolio : What is the beta of this portfolio? What (specifically) would you do to bring this portfolio back to a target beta of1.10?
Calculate the 13 basic ratios found in the chapter : Using the financial statements for the Niara Calendar Company, calculate the 13 basic ratios found in the chapter.
How much cash was collected from making sales and collecting : Beginning and ending accounts receivable are $76,000 and $42,000, respectively. Sales for the period total $384,000, of which $40,000 was directly for cash. How much cash was collected from making sales and collecting accounts receivable?
What is the cost of equity from retained earnings based : Assume that you are a consultant to Morton Inc. and you have been provided with the following data: D1 = $1.00; P0 = $25.00; and g = 6% (constant). What is the cost of equity from retained earnings based on the DCF approach?

Reviews

Write a Review

Finance Basics Questions & Answers

  What is the future value of your retirement after 12 years

You deposit $8,000 into a retirement account at the end of the next 12 years earning 10% interest, what is the future value of your retirement after 12 years?

  What is the expected return of the stock after this transact

Suppose Microsoft has no debt and an equity cost of capital of 9.2%. The average debt-to-value ratio for the software industry is 13%. What would its cost of equity be if it took on the average amount of debt for its industry at a cost of debt of 6%?

  Identify and explain the four factors that influence asset

answer each of the 2 essay questions below with a response that is at least 300 words in length. the total submission

  Qualities of effective corporate governance

Evaluate the qualities of effective corporate governance. Use technology and information resources to research issues in advanced financial management.

  Weakness of breakeven analysis

A weakness of breakeven analysis is that it suppose: revenue and costs are a linear function of volume, prices and costs increase when the economy is strong and confidence is high.

  What will happen to the futures price

If at the expiration date, the deliverable Treasury bond is selling for 101 but the Treasury bond futures contract is selling for 102, what will happen to the futures price? Explain your answer.

  Hillman inc has net income of 160000 weighted-average

hillman inc. has net income of 160000 weighted-average shares of common stock outstanding of 50000 and preferred

  What is your post-assessment respect development

What is your post-assessment respect development from these bonds?

  Calculate the net present value of each of the alternatives

As a financial analyst at Glencolin International (GI) you have been asked to evaluate two capital investment alternatives submitted by the production department of the firm. Before beginning your analysis, you note that company policy has set the co..

  Which of the following would most likely result in higher

which of the following would most likely result in higher gross profit margin assuming no fixed costs? a. a 10 increase

  How does the tax treatment of dividend income

How does the tax treatment of dividend income by the corporation moderate the effects of double taxation?

  The current price of a non-dividend-paying stock is 30 over

the current price of a non-dividend-paying stock is 30. over the next six months it is expected to rise to 36 or fall

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