Finance
A hedge fund uses repo financing to invest in an asset with a market value of $100. The haircut is 20% when the repo agreement is initiated. The market value of the asset drops 10% at the time when the hedge fund needs to roll over the repo agreement. If the haircut remains the same (in percentage) for the rollover, what is the hedge fund’s equity position after the rollover (dollar amount, keep two decimals)?
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9. A portfolio manager has an equity portfolio that is valued at $75 million. The Portfolio...
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finance help please 1. Assume that you manage a risky portfolio with an expected rate of...
finance help please
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6.
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finance help please
1. Assume that you manage a risky portfolio with an expected rate of return of 18% and a standard deviation of 28%. The T-bill rate is 8%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. a) What is the expected value and standard deviation of the rate of return on his portfolio? b) Suppose that your risky portfolio includes the following investments in the given...
Jefferson Steel requires $15 million to fund its current year’s
capital projects. Jefferson will finance part of its needs with
equity. The firm’s common stock is selling in the market at $180
per share. Dividends of $1 per share were recently paid (Do).
Dividend growth of 6 percent per year is expected for the
foreseeable future. The market is currently demanding a 6 percent
premium on the average risk stock and Tbonds are currently yielding
3%. Preferred stock is selling...
Jefferson Steel requires $15 million to fund its current year's capital projects. Jefferson will finance part of its needs with equity. The firm's common stock is selling in the market at $180 per share. Dividends of $1 per share were recently paid (Do). Dividend growth of 6 percent per year is expected for the foreseeable future. The market is currently demanding a 6 percent premium on the average risk stock and Tbonds are currently yielding 3%. Preferred stock is selling...
Jefferson Steel requires $15 million to fund its current year's capital projects. Jefferson will finance part of its needs with equity. The firm's common stock is selling in the market at $180 per share. Dividends of $1 per share were recently paid (Do). Dividend growth of 6 percent per year is expected for the foreseeable future. The market is currently demanding a 6 percent premium on the average risk stock and Tbonds are currently yielding 3%. Preferred stock is selling...
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6.
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