Business, 26.11.2020 02:50, ayoismeisalex
The following data apply to Problems 8-12. A pension fund manager is considering three mutual funds. The first is a stock fund, the second is a long-term government and corporate bond fund, and the third is a T-bill money market fund that yields a sure rate of 5.5%. The probability distributions of the risky funds are: Expected Return Standard Deviation Stock fund (S) 15% 32%Bond fund (B) 9 23%The correlation between the fund returns is 0.15 8. 1. Tabulate and draw the investment opportunity set of the two risky funds. Use investment proportions for the stock fund of 0% to 100% in increments of 20%. What expected return and standard deviation does your graph show for the minimum-variance portfolio? 2. Draw a tangent from the risk-free rate to the opportunity set. What does your graph show for the expected return and standard deviation of the optimal risky portfolio? 3. What is the Sharpe ratio of the best feasible CAL? 4. Suppose now that your portfolio must yield an expected return of 12% and be efficient, that is, on the best feasible CAL. A. What is the standard deviation of your portfolio? B. What is the proportion invested in the T-bill fund and each of the two risky funds? 5. A. If you were to use only the two risky funds and still require an expected return of 12%, what would be the investment proportions of your portfolio? B. Compare its standard deviation to that of the optimal portfolio in the previous problem. What do you conclude?
Answers: 1
Business, 21.06.2019 22:50, chloespalding
Assume that the governance committee states that all projects costing more than $70,000 must be reviewed and approved by the chief information officer and the it senior leadership team (slt). at this point, the cio has the responsibility to ensure that management processes observe the governance rules. for example, the project team might present the proposed project in an slt meeting for a vote of approval. what does this scenario illustrate about organizational structure?
Answers: 2
Business, 22.06.2019 01:00, snikergrace
Granby foods' (gf) balance sheet shows a total of $25 million long-term debt with a coupon rate of 8.50%. the yield to maturity on this debt is 8.00%, and the debt has a total current market value of $27 million. the company has 10 million shares of stock, and the stock has a book value per share of $5.00. the current stock price is $20.00 per share, and stockholders' required rate of return, r s, is 12.25%. the company recently decided that its target capital structure should have 35% debt, with the balance being common equity. the tax rate is 40%. calculate waccs based on book, market, and target capital structures. what is the sum of these three waccs?
Answers: 3
Business, 22.06.2019 10:50, slavenkaitlynn
Kimberly has been jonah in preparing his personal income tax forms for a couple of years. jonah's boss recommended kimberly because she had done a good job setting up the company's new accounting system. jonah is very satisfied with kimberly's work and feels that the fees she charges are quite reasonable. kimberly would be classified as a(n) (a) independent auditor (b) private accountant (c) public accountant (d) accounting broker
Answers: 1
Business, 22.06.2019 11:20, jasalina
In 2000, campbell soup company launched an ad campaign that showed prepubescent boys offering soup to prepubescent girls. the girls declined because they were concerned about their calorie intake. the boys explained that “lots of campbell’s soups are low in calories,” which made them ok for the girls to eat. the ads were pulled after parents expressed concern. why were parents worried? i
Answers: 2
The following data apply to Problems 8-12. A pension fund manager is considering three mutual funds....
History, 17.07.2019 14:00
History, 17.07.2019 14:00