Fund YYY Beta= 1.02 Standard Dev%= 4.28 Return%=17 RFR%= 6 Compute the Jensen Measure of Fund...
Fund YYY Beta= 1.02 Standard Dev%= 4.28 Return%=17 RFR%= 6 Compute the Jensen Measure of Fund YYY ** all that was given in the question, not sure if CAPM needs to be used too
Homework Answers
Jensen alpha = (Portfolio return - Risk free rate) / Beta
= (17% - 6%) / 1.02 = 10.78%
Add Answer to:
Fund YYY Beta= 1.02 Standard Dev%= 4.28 Return%=17 RFR%= 6
Compute the Jensen Measure of Fund...
compute standard dev of portfoilio A compute expected rate of return for B compute standard dev...
compute standard dev of portfoilio A
compute expected rate of return for B
compute standard dev of B
Computing the expected rate of return and risk Aber a tumous period in the stock market Logan Morgan is considering an veter in one of the portions Given the normation that w based on risk measured by the standard deviation and retums measured by the expected of Question Help hich invest Portfolio A Probability Return Portfolio Probability Return a. The expected rate...
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Compute the expected return, standard deviation, beta, and nonsystematic standard deviation of the portfolio. 4. Assume...
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Part TWO Portfolio Theory fund, and the third is a T-bill The following data apply to...
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Your group manages an investment fund. Your job is to advise clients on what portfolio best...
Your group manages an investment fund. Your job is to advise clients on what portfolio best suits their needs, given their characteristics. You have three different customer types I. A young Deakin Commerce graduate (Stephanie) with a long and successful career 11, A middle-aged couple (Harold and Meredith) who are high income earners. They plan ahead of her to retire in 10 years' time. III. An older member of the work force (Akhter) who is hoping to retire in the...
Your group manages an investment fund. Your job is to advise clients on what portfolio best...
Your group manages an investment fund. Your job is to advise
clients on what portfolio best suits their needs, given their
characteristics. You have three different customer types: I. A
young Deakin Commerce graduate (Stephanie) with a long and
successful career ahead of her. II. A middle-aged couple (Harold
and Meredith) who are high income earners. They plan to retire in
10 years’ time. III. An older member of the work force (Akhter) who
is hoping to retire in the...
Hello, i want to ask you Inventory cost =3.6(B1+B2)/2+3.75(B2+B3)/2+3.98(B3+B4)/2+4.28(B4+B5)/2+4.2(B5+B6)/2+3.9(B6+B7)/2, So, how to compute 3.6, 3.75, 3.98,...
Hello, i want to ask you Inventory cost
=3.6(B1+B2)/2+3.75(B2+B3)/2+3.98(B3+B4)/2+4.28(B4+B5)/2+4.2(B5+B6)/2+3.9(B6+B7)/2,
So, how to compute 3.6, 3.75, 3.98, 4.28, 4.2? And why 3.6X(B1+B2)
and divide by 2? Also, i want to ask the objective function for
this problem why is minimize, not maximize? Thank you for your
help!
The Upton Corporation manufactures heavy-duty air compressors for the home and light industrial markets. Upton is presently trying to plan its production and inventory levels for the next six months. Because of seasonal fluctuations...
Dropdown options: 1-risk/return 2-equal to/greater or less than 3-self contained/stand-alone 4-variance/standard deviation 5-variance/beta coefficient 6-diversifiable/non-diversiable 7-is/...
Dropdown options:
1-risk/return
2-equal to/greater or less than
3-self contained/stand-alone
4-variance/standard deviation
5-variance/beta coefficient
6-diversifiable/non-diversiable
7-is/ is not
8-diversifiable/non-diversifiable
9-random/non random
10-decreasing/increasing
11-2000+/500
12-reduces/increases
13-systematic of market/unsystematic or company-specific
14-diversifiable/non diversifiable
1. Basic concepts - Risk and return Professor Isadore (Izzy) Invest-a-Lot retired two years ago from Exceptional College, a small liberal arts college in North Carolina after teaching corporate finance and investment theory for 35 years. Yesterday, Izzy appear on EC LIVE, a television show produced for the students,...
MULTIPLE CHOICE 1) Which of the following is NOT an investment as defined in the text?...
MULTIPLE CHOICE 1) Which of the following is NOT an investment as defined in the text? A) a certificate of deposit issued by a bank B) a new automobile C) a United States Saving Bond D) a mutual fund held in a retirement account 2) Which of the following is NOT traded in the securities markets? A) stocks B) bonds C) derivatives D) real estate 3) The governmental agency that oversees the capital markets is the A) Federal Trade Commission....
compute standard dev of portfoilio A
compute expected rate of return for B
compute standard dev of B
Computing the expected rate of return and risk Aber a tumous period in the stock market Logan Morgan is considering an veter in one of the portions Given the normation that w based on risk measured by the standard deviation and retums measured by the expected of Question Help hich invest Portfolio A Probability Return Portfolio Probability Return a. The expected rate...
Question 6 (1 point) A stock has a beta of 2.4, the market expected return is 8% and the riskfree rate is 2%. What is the expected rate of return according to CAPM? Express your answer as a percentage, for example 3.18% should be entered as 3.18 without the percentage sign. Your Answer: Answer Question 7 (1 point) Suppose the covariance between the returns of the stock GHI and the returns to the market is 0.00064 and the standard deviation...
Compute the expected return, standard deviation, beta, and nonsystematic standard deviation of the portfolio. 4. Assume that the total market value of an initial portfolio is $300,000. Suppose that the owner of this portfolio wishes to decrease risk by reducing the allocation to the risky portfolio from y = 0.7 to y = 0.56. How do you reallocate your risky portfolio? 5. Which of the following factors reflect pure market risk for a given corporation? a. Increased short-term interest rates....
Part TWO Portfolio Theory fund, and the third is a T-bill The following data apply to Problems 8-12. A pension fund manager is considering three mutual funds. The first is a stock the second is a long-term government and corporate bond fund, and the third is. money market fund that yields a sure rate of 5.5%. The probability distributions of risky funds are: Standard Deviation Expected Return 15% 32% Stock fund (5) Bond fund (B) The correlation between the fund...
INSTRUCTIONS: ATTEMPT ANY FOUR (4) QUESTIONS a. Question 1 A mutual fund is a professionally managed type of collective investment scheme that pools money from many investors and invests in stocks, bonds, short-term money market instruments and other securities. The performance of these mutual funds and the portfolio they build needs to be evaluated as frequently as possible. Evaluating the performance of these mutual funds is important for both existing and potential investors. The Table below provides the average return,...
Your group manages an investment fund. Your job is to advise clients on what portfolio best suits their needs, given their characteristics. You have three different customer types I. A young Deakin Commerce graduate (Stephanie) with a long and successful career 11, A middle-aged couple (Harold and Meredith) who are high income earners. They plan ahead of her to retire in 10 years' time. III. An older member of the work force (Akhter) who is hoping to retire in the...
Your group manages an investment fund. Your job is to advise
clients on what portfolio best suits their needs, given their
characteristics. You have three different customer types: I. A
young Deakin Commerce graduate (Stephanie) with a long and
successful career ahead of her. II. A middle-aged couple (Harold
and Meredith) who are high income earners. They plan to retire in
10 years’ time. III. An older member of the work force (Akhter) who
is hoping to retire in the...
Hello, i want to ask you Inventory cost
=3.6(B1+B2)/2+3.75(B2+B3)/2+3.98(B3+B4)/2+4.28(B4+B5)/2+4.2(B5+B6)/2+3.9(B6+B7)/2,
So, how to compute 3.6, 3.75, 3.98, 4.28, 4.2? And why 3.6X(B1+B2)
and divide by 2? Also, i want to ask the objective function for
this problem why is minimize, not maximize? Thank you for your
help!
The Upton Corporation manufactures heavy-duty air compressors for the home and light industrial markets. Upton is presently trying to plan its production and inventory levels for the next six months. Because of seasonal fluctuations...
Dropdown options:
1-risk/return
2-equal to/greater or less than
3-self contained/stand-alone
4-variance/standard deviation
5-variance/beta coefficient
6-diversifiable/non-diversiable
7-is/ is not
8-diversifiable/non-diversifiable
9-random/non random
10-decreasing/increasing
11-2000+/500
12-reduces/increases
13-systematic of market/unsystematic or company-specific
14-diversifiable/non diversifiable
1. Basic concepts - Risk and return Professor Isadore (Izzy) Invest-a-Lot retired two years ago from Exceptional College, a small liberal arts college in North Carolina after teaching corporate finance and investment theory for 35 years. Yesterday, Izzy appear on EC LIVE, a television show produced for the students,...
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