A) Assume that stock returns follow a 2-factor structure. The
risk-free return is3%. Portfolio A has...
A) Assume that stock returns follow a 2-factor structure. The
risk-free return is3%. Portfolio A has average return 8% and
factor-betas 0.7 and 0.9 (for factor 1 and 2, respectively).
Portfolio B has average return 10% and factor-betas 1.2 and 1.1
(for factor 1 and 2, respectively). What is the average return for
portfolio C that has factor-betas 1 and 1 (for factor 1 and
2,respectively)?
B) A 5-year bond with face value $1,000 (paid at maturity) and
coupon rate...
1.
Quantitative Problem: You are holding a
portfolio with the following investments and betas:
Stock
Dollar...
1.
Quantitative Problem: You are holding a
portfolio with the following investments and betas:
Stock
Dollar investment
Beta
A
$300,000
1.3
B
200,000
1.7
C
400,000
0.85
D
100,000
-0.3
Total investment
$1,000,000
The market's required return is 9% and the risk-free rate is 3%.
What is the portfolio's required return? Round your answer to 3
decimal places. Do not round intermediate calculations.?????
2.
Suppose you are the money manager of a $4.78 million investment
fund. The fund consists of...
2. Quantitative Problem: You are holding a
portfolio with the following investments and betas:
Stock
Dollar...
2. Quantitative Problem: You are holding a
portfolio with the following investments and betas:
Stock
Dollar investment
Beta
A
$200,000
1.3
B
100,000
1.7
C
300,000
0.7
D
400,000
-0.35
Total investment
$1,000,000
The market's required return is 10% and the risk-free rate is
3%. What is the portfolio's required return? Round your answer to 3
decimal places. Do not round intermediate calculations.
___%
7. Suppose you are the money manager of a $4.55 million
investment fund. The fund consists...
1. Your stock investments return 8%, 12%, and -4% in consecutive
years. What is the variance?...
1. Your stock investments return 8%, 12%, and -4% in consecutive
years. What is the variance?
A)0.0069
B)0.0096
D)0.0036
D)0.0049
E)0.0089
2. What would be the standard deviation of the returns 8%, 12%,
and -4% in consecutive years?
A) 4.33%
B) 5.35%
C) 6.33%
D) 3.65%
E) 8.31%
Kellman Company
Year 2
Year 1
Total current assets
$627,900
$564,400
Total investments
65,500
52,800
Total...
Kellman Company
Year 2
Year 1
Total current assets
$627,900
$564,400
Total investments
65,500
52,800
Total property, plant, and equipment
928,300
722,500
Total current liabilities
101,100
86,500
Total long-term liabilities
294,900
243,500
Preferred 9% stock, $100 par
97,700
97,700
Common stock, $10 par
549,800
549,800
Paid-in capital in excess of par—Common stock
67,100
67,100
Retained earnings
511,100
295,100
Using the balance sheets for Kellman Company, if net income is
$100,400 and interest expense is $34,800 for Year 2, and the...
Suppose now producers (firms) receive news that future total
factor productivity
will be
high
. The...
Suppose now producers (firms) receive news that future total
factor productivity
will be
high
. The monetary authority targets the interest rate to the long
run
equilibrium le
vel, and uses money supply to keep the interest rate at the
target.
What will happen to the labor employment, real wage, output,
consumption,
investment, average labor productivity, and money supply?
Explain the reasons of
the direction of change for each
of the variables, and when necessary, use graphs
to help your...