What is the Treynor ratio of a portfolio comprised of 40 percent portfolio A, 25 percent portfolio B, and 35 percent portfolio C?
Asset | Weight | Avg Return | Std Dev | Beta | |||
A | 40 | % | 15.30 | % | 17.20 | % | 1.56 |
B | 25 | % | 10.50 | % | 9.80 | % | 0.95 |
C | 35 | % | 13.30 | % | 14.10 | % | 1.25 |
The risk-free rate is 2.9 percent and the market risk premium is 8.6 percent.
Multiple Choice
0.070
0.102
0.054
0.062
0.081
What is the Treynor ratio of a portfolio comprised of 40 percent portfolio A, 25 percent...
What is the Treynor ratio of a portfolio comprised of 40 percent portfolio A, 25 percent portfolio B, and The risk-free rate is 2.5 percent and the market risk premium is 8.4 percent. Asset Weight Avg Return Std Dev Beta A 40 % 15.30 % 17.20 % 1.25 B 25 % 10.50 % 9.80 % 1.3 C 35 % 13.30 % 14.10 % 0.95 Group of answer choices 0.094 0.057 0.081 0.076 0.063
You own a portfolio that is 25 percent invested in Stock X, 35 percent in Stock Y, and 40 percent in Stock Z. The expected returns on these three stocks are 10 percent, 13 percent, and 15 percent, respectively. What is the expected return on the portfolio? PART A: is this a systematic risk or a unsystematic risk
Cascade Mining Company expects its earnings and dividends to increase by 8 percent per year over the next 6 years and then to remain relatively constant thereafter. The firm currently (that is, as of year 0) pays a dividend of $4.5 per share. Determine the value of a share of Cascade stock to an investor with a 11 percent required rate of return. Use Table II to answer the question. Round your answer to the nearest cent. TABLE II Present...
1 Appendix B Present value of $1. PVF PV=FV Percent Period 1% 5% 8% 9% 12% 1 2. 3 0.893 0.797 012 4 6 7 8 9 10 .............. 11 12 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.853 0.844 0.836 0.828 0.820 0.780 0.742 0.672 0.608 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.728 0.714 0.700 0.686 0.673 0.610 0.552 0.453 0.372...
1 Appendix B Present value of $1. PVF PV=FV Percent Period 1% 5% 8% 9% 12% 1 2. 3 0.893 0.797 012 4 6 7 8 9 10 .............. 11 12 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.853 0.844 0.836 0.828 0.820 0.780 0.742 0.672 0.608 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.728 0.714 0.700 0.686 0.673 0.610 0.552 0.453 0.372...
1 Appendix B Present value of $1. PVF PV=FV Percent Period 1% 5% 8% 9% 12% 1 2. 3 0.893 0.797 012 4 6 7 8 9 10 .............. 11 12 0.990 0.980 0.971 0.961 0.951 0.942 0.933 0.923 0.914 0.905 0.896 0.887 0.879 0.870 0.861 0.853 0.844 0.836 0.828 0.820 0.780 0.742 0.672 0.608 2% 0.980 0.961 0.942 0.924 0.906 0.888 0.871 0.853 0.837 0.820 0.804 0.788 0.773 0.758 0.743 0.728 0.714 0.700 0.686 0.673 0.610 0.552 0.453 0.372...
DataPoint Engineering is considering the purchase of a new piece of equipment for $255,000. It has an eight-year midpoint of its asset depreciation range (ADR). It will require an additional initial investment of $250,000 in nondepreciable working capital. Eighty-two thousand dollars of this investment will be recovered after the sixth year and will provide additional cash flow for that year. Income before depreciation and taxes for the next six are shown in the following table. Use Table 12-11 Table 12-12....
1- Larry Davis borrows $73,000 at 12 percent interest toward the purchase of a home. His mortgage is for 30 years. Use Appendix D for an approximate answer, but calculate your final answer using the formula and financial calculator methods. a. How much will his annual payments be? (Although home payments are usually on a monthly basis, we shall do our analysis on an annual basis for ease of computation. We will get a reasonably accurate answer.) b. How much...
Dooley, Inc., has outstanding $50 million (par value) bonds that pay an annual coupon rate of interest of 8.5 percent. Par value of each bond is $1,000. The bonds are scheduled to mature in 17 years. Because of Dooley’s increased risk, investors now require a 15 percent rate of return on bonds of similar quality with 17 years remaining until maturity. The bonds are callable at 112 percent of par at the end of 9 years. Use Table II and...