Homework Answers
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| Equation formation | |
| x+y+z = | 175000 |
| x+y= | z |
| x*15%+y*10%+z*6%= | 17500 |
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A private investment club has $175,000 e been classified into three categories: high-risk, medium-risk, and low-risk....
ulate but do not solve the problem t club has a fund of $200,000 earmarked for...
ulate but do not solve the problem t club has a fund of $200,000 earmarked for investment in stocks. To arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high-risk, medium-risk, and low-risk. Management estimates that high-risk stocks will have a rate of return of 16%/year, medium risk stocks, 9%/year, and low-risk stocks, 6% year. The investment in low-risk stocks is to be twice the sum of the investments...
#6. A car insurance company has high-risk, medium-risk, and low-risk clients, who have, respectively, probabilities.04,.02, and.01...
#6. A car insurance company has high-risk, medium-risk, and low-risk clients, who have, respectively, probabilities.04,.02, and.01 of filing claims within a given year. The proportions of the numbers of clients in the three categories are .15, .25, and.60, respectively (a) What is the probability that a random client doesn't file a claim? (b) What proportion of the claims filed each year come from high-risk clients? (c) What is the probability that a random client who didn't file a claim is...
An investor has $20,000 to invest in a portfolio of three accounts. Account 1 offers a...
An investor has $20,000 to invest in a portfolio of three
accounts. Account 1 offers a return of 2% and at a low risk.
Account 2 offers a return of 4% and has a medium risk. Account 3
offers a return of 5% but at a relatively high risk. He decided to
invest no more than $3000 into account 3 and at least twice as much
in Account 1 into the investment of Account 2.
a) Formulate this as a...
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13. NDR is a company that is deciding between three projects, High, Medium, and Low. The...
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The esteemed brokerage firm of Black, Scholes and Merton has just been instructed by one of its clients to invest $250,0...
The esteemed brokerage firm of Black, Scholes and Merton has just been instructed by one of its clients to invest $250,000 of her money obtained recently through the sale of Netflix, Inc. The client has a good deal of trust in the brokerage firm, but she also has her own ideas about the distribution of the funds being invested. In particular, she requests that the firm select whatever stocks and bonds they believe are well rated, but within the following...
The Heinlein and Krampf Brokerage firm has just been instructed by one of its clients to invest $...
The Heinlein and Krampf Brokerage firm has just been instructed by one of its clients to invest $250,000 of her money obtained recently through the sale of land holdings in Ohio. The client has a good deal of trust in the in¬vestment house, but she also has her own ideas about the distribution of the funds being invested. In par¬ticular, she requests that the firm select whatever stocks and bonds they believe are well rated, but within the following guidelines:...
98) Which of the following statements is FALSE A) The volatility declines as the number of stocks in a portfolio grows. B) An equally weighted portfolio is a porfolio in which the same amount is...
98) Which of the following statements is FALSE A) The volatility declines as the number of stocks in a portfolio grows. B) An equally weighted portfolio is a porfolio in which the same amount is invested in eadh stock C) As the number of stocks in a portfolio grows large, the variance of the portfolio is determined primarily by the average covariance among the stocks D) When combining stocks into a portfolio that puts positive weight on each stock, unless...
can someone please read my risk and returns and let me know if it makes sense....
can someone please read my risk and returns and let me
know if it makes sense. if it does not could you explain please.
Thanks
Speech Accessibility Tracking Compare Proofing Language Comments Changes ink Resume Investing In a new factory Investing in a factory building is always one decision corporations will have to make and it is usually based off why a new factory is needed and if it will be profitable for a company to expand. McCormick and Company...
ulate but do not solve the problem t club has a fund of $200,000 earmarked for investment in stocks. To arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high-risk, medium-risk, and low-risk. Management estimates that high-risk stocks will have a rate of return of 16%/year, medium risk stocks, 9%/year, and low-risk stocks, 6% year. The investment in low-risk stocks is to be twice the sum of the investments...
#6. A car insurance company has high-risk, medium-risk, and low-risk clients, who have, respectively, probabilities.04,.02, and.01 of filing claims within a given year. The proportions of the numbers of clients in the three categories are .15, .25, and.60, respectively (a) What is the probability that a random client doesn't file a claim? (b) What proportion of the claims filed each year come from high-risk clients? (c) What is the probability that a random client who didn't file a claim is...
An investor has $20,000 to invest in a portfolio of three
accounts. Account 1 offers a return of 2% and at a low risk.
Account 2 offers a return of 4% and has a medium risk. Account 3
offers a return of 5% but at a relatively high risk. He decided to
invest no more than $3000 into account 3 and at least twice as much
in Account 1 into the investment of Account 2.
a) Formulate this as a...
13. NDR is a company that is deciding between three projects, High, Medium, and Low. The projects have internal rate of returns (IRR) and cash flows as listed in the table below. Year 3 2 1 Project IRR 12.1% $100 -45 -35-45 A 35 -15 9.0% -$ 50 35 В -9 18 18 7.8% -$25 C Unfortunately, NDR doesn't know what discount rate to use to value the projects in order to calculate the net present values. In which project(s)...
98) Which of the following statements is FALSE A) The volatility declines as the number of stocks in a portfolio grows. B) An equally weighted portfolio is a porfolio in which the same amount is invested in eadh stock C) As the number of stocks in a portfolio grows large, the variance of the portfolio is determined primarily by the average covariance among the stocks D) When combining stocks into a portfolio that puts positive weight on each stock, unless...
can someone please read my risk and returns and let me
know if it makes sense. if it does not could you explain please.
Thanks
Speech Accessibility Tracking Compare Proofing Language Comments Changes ink Resume Investing In a new factory Investing in a factory building is always one decision corporations will have to make and it is usually based off why a new factory is needed and if it will be profitable for a company to expand. McCormick and Company...
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