Question

1. A portfolio has a total return of 10.5%, a beta of 0.72 and a standard deviation of 6.3%. The risk free rate is 3.8%, the market return is 12.4%. Jensen's measure of this portfolio's performance is

a. .5%

b. .30%

1. Six months ago, Suzanne purchased a stock for $28 a share. Today she sold the stock at a price of $32 a share. During the time she owned the stock, she received a total of $1.30 in dividends per share. What is her holding period return?

A) 16.6%

B) 18.9%

C) 33.2%

D) 37.8%

1. 16) A bond matures in 30 years, has a 20 year duration and a yield to maturity of 9.32%. The market interest rate has increased by 0.47%. The modified duration is

A) 9.4 years.

B) 14.1 years.

C) 18.29 years.

D) 27.44 years.

12) What is the current price of a $1,000, 6% coupon bond that pays interest **semi-annually if the bond matures in ten years and has a yield-to-maturity of 7.1325%?

A) $567

B) $920

C) $1,030

D) $1,080

Answer: B

Can you please show work.

Answer 1

Answer: Jensens Measur ie Pctfolio's Alfa p ECRA) RE [ER RAB , E(RP) stonds for tolol Rotun 6 Portfolia = RisR ree रot of folus Rf E(Rm) Morket Rote BP Roturn Poct folio Bota E2.-3.0.32 op 10.5 10.0-9.92 a598 FINAL ANSWERE (a)o.s % Tnd que stion Holding periad 6Monta Cp- PotDvidend incond Holding Periad Rotom CHAR) feiding period Price at the end PL tua Paice at fuo Begineinghoding period Po 1 HPR-(3a-23)+.30 ->

FINAL ANSUER 18.9% 16 Matuily paiad 3oyexs 20 yens Durahona Rand TTM (ka) 9. 3a 7 Modified Dora hov Dora hon Raud (Lt YTM Rond n Staud or No. Coupon poyet par year asumig Copons Lox paid Awnaly 20132) 18.29 faors (ka)= Maturity peried toyes 7.13257 ield to 2 Face Valua =$L000 Coupon Role Sime tue Coupons poymeut Coupon Roks Period 1o4r X2 or Semi Annual, there foe 6%-2-3 20 Aolf years 3.566257 Kd bmonths 7.13a5 per

Bo as on today Poud Value Interest 20 BoInterent Interest Intereat + + Ka) + Redamphon Amount t ka)20 30 Bo + 30 30 30 + + (+0.0356625 (40.03562) (40.0356620 (t0.0356625 10070 + (it 0.0356625 Bo $9a0