Suppose you are given the following information about 2 stocks, what is the Sharpe Ratio of a portfolio weighted 55% in stock A and 45% in stock B? E(RA)=16% E(RB)=8% σA=22% σB=12% σA,B=−0.003696 rf=3% Enter rate in decimal form, rounded to 4th digit, as in "0.1234"

Q: (1) (2) (3) (4) to his board colleagues. The operations director has already explained to the maring…

A: Payback method = Time estimation in which initial investment is recovered. Internal Rate of Return =…

Q: The margin requirement on a stock purchase is 30%. You fully use the margin allowed to purchase 200…

A: Calculating an investment's gain or loss as a percentage is crucial since it reveals how much was…

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A: Financing is the process of providing funds for the  commercial activities, purchases, or the…

Q: On January 1, 2003, Superior Landscaping Company paid P17,000 to buy a stump grinder. If Superior…

A: Total Stumps = 2,500 stumps per year x 10 years = 25,000 stumps  Depreciation per stump = (Total…

Q: A company borrowed at 7 42% compounded monthly to purchase equipment, agreeing to make payments of…

A: Given, The rate of interest is 7.42% compounded monthly. Quarterly payments is $2900 Term is 17…

Q: You have been asked for your advice in selecting a portfolio of assets and have been given the…

A: Thanks for posting your question, but as per the guidelines in the case of multipart questions, we…

Q: erpetuity is a type of annuity which has infinite period of payments. The present value of a…

A: Present Value: It represents the present worth of future cash flows.  Thus, it is calculated by…

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A: Here, Monthly payments = P 5,000  Interest rate = 8% compounded annually To Find: Present value of…

Q: Find the amount budgeted for each category. Use the percents shown in the example for each weekly…

A: Given, Budgeted percentages allocated for different sources.

Q: vii. List two (2) disadvantages of using the NPV method in evaluating business investments.

A: NPV is a techniques in Capital Budgeting which help in decision making on the basis of future Cash…

Q: AmutualfundhasPhP600millionworthofstocks,PhP5millionworthofbonds,andPhP1millionin cash. The fund’s…

A: NAV refers to net asset value. NAV, essentially, is the unit price in a mutual fund scheme.

Q: Determine the periodic payments on the given loan or mortgage. HINT [See Example 5.] (Round your…

A: Annuity (periodic payment) refers to an amount or stream of equal cash flows (CF) paid or received…

Q: The options on the stock of the Petronas Gas Berhad have the following input values: Stock price…

A: Given: Particulars   Current stock price 55.00 Standard deviation 33% Risk free rate 12.00%…

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A: Too big to fail or TBTF means that some organisations are so large and essential to the functioning…

Q: Zeda Enterprises has the option to invest in machinery in projects A and B but finance is only…

A: Here, Details of project A: Year Initial Investment Net Profit Depreciation 0  $…

Q: Ying Import has several bond issues outstanding, each making semiannual interest payments. The bonds…

A: Here, To Find: After-tax cost of the company's debt =?

Q: You are considering the purchase of a new machine for a project. Details of this potential purchase…

A: Cash flow statement considers only cash dealt items.

Q: An executive receives an annual salary of P500,000 and his secretary a salary of P160,000 a year. A…

A: Annual salary of executive= P 500,000 No. of hours worked by executive in a year= 3,000 Salary cost…

Q: Assume that today's date is August 15, 2015 and that the Kroger Bond is a semiannual-coupon bond…

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Q: MIRR unequal lives. Singing Fish Fine Foods has $1,820,000 for capital investments this year and is…

A: Here, To Find: MIRR =? Adjusted MIRR =?

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A: Loans are paid by annual payments and these carry the payment for loan and pay for interest amount…

Q: Part of $2,800 is invested at 12%, another part at 13%, and the remainder at 14%. The total yearly…

A: Solution:- When an amount is invested somewhere, it earns interest on it. The amount invested…

Q: Filer Manufacturing has 6,820,579 shares of common stock outstanding. The current share price is…

A: Data given: A) First bond issue Face value = $45,114,745  Coupon=0.05  n=10 years Sells for 83…

Q: Filer Manufacturing has 6,765,790 shares of common stock outstanding. The current share price is…

A: Weight of Debt = Market Value of Debt/(Market Value of equity + Market Value of Debt) Market Value…

Q: You wish to have $100,000 in 15 years. How much should you set aside today if the discount rate is…

A: Present Value: It is the current worth  of a future sum of money at  a fixed  rate of return.…

Q: The nation of Qatar just issued a perpetual bond. The bond will pay $1,000 in one year and that will…

A: Cash Flow = $1,000 Growth Rate = 1% Discount Rate = 4%

Q: Find the future value of $1 000 at 7.8% p.a. simple interest over 14 months.

A: Simple interest does not consider the effect of compounding of interest over the period of time. The…

Q: ZUD Inc is evaluating a 10-year project that requires an investment today of $9.4 million in assets…

A: Solution:- Depreciation tax shield means the tax benefit arising due to depreciation expense. So,…

Q: Determine reasons behind stock repurchases.

A: Stock Repurchases: Stock repurchase also known as share buyback of shares represents the shares…

Q: What is the connection between Business Valuation and Financing Options ?

A: Business valuation:  The economic worth of a firm or business unit is determined via business…

Q: Question 26 From our discussion of interest rate frameworks, we can guess that the demand for…

A:

Q: In your position as research assistant to a portfolio manager, you need to analyze the profitability…

A: Hi There, thanks for posting the question. But as per Q&A guidelines, we must answer the first…

Q: Insteadofbuyingamotorcyclethisyear,youdecidedtopostponeitforanother3yearsanddeposityour money worth…

A: Inflation is the general loss of the value of money over time. It happens because of demand for…

Q: When a business factors its accounts receivables, the business O no longer has to deal with the…

A: Solution:- Factoring is a concept in which the business sells its debtors to a third party, known as…

Q: Liabilities and Owners' Capital Current Liabilities Accounts payable Notes payable Other current…

A: Harriston's capital structure weights. Harriston's cost of equity capital using the CAPM Harriston's…

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A: Capital expenditure or CAPEX  includes purchase of land, machinery, equipment, furniture and…

Q: What is the future value of $5480 6 years from now at 7 percent? 2) What is the future value of…

A: Important Note:- “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be…

Q: B. Investment. An investor has at most $100,000 to invest in government bonds, mutual funds, and…

A: As per the given information: Amount to be invested - $100,000 Average yield for government bonds -…

Q: H. Cochran, Inc., is considering a new three-year expansion project that requires an initial fixed…

A: Net present value is the excess of present value of cash inflows over initial investment made by a…

Q: Create investment portfolio (use a Philippine insurance and investment products)

A: In order to create an investment portfolio, the following steps should be considered: i) Asset…

Q: B

A: The benefit-cost ratio refers to the ratio which reflects the relationship between the cost and…

Q: Consider a three-year project with the following information: initial fixed asset investment =…

A: Operating cash flow (OCF) refers to the amount of cash flow (CF) generated by the company during a…

Q: .What was size of the investment in the fund if it was earning 5.50% compounded semi-annually?

A: Present Value of Perpetuity Due: It refers to the present worth of the annuity payments made for…

Q: 18) One-year T-bill rates over the next four years are expected to be 2%, 4%, 6%, and 8%. If…

A: Given, The four year T bond rate is 4.5% The one year T-bill rates for the next four years are 2%,…

Q: If an investor places a sell order with a stop price. When the stop price occurs, the order will be…

A: Solution:- Stop loss means putting a limit on your loss.

Q: Which ones identify the disadvantages of the payback rule? A. Very simple and easy to apply. B.…

A: Solution: Payback period is one of the decision making criteria in capital budgeting. It measures…

Q: Hotel California, a lovely place along the 101 Highway, last underwent an upgrade in 1969. As a…

A: Expected Profit The expected profit (read, average profit in this case)  can be computed as the sum…

Q: What is the expected return of Stock A given the information below about its returns across future…

A: Solution:- Expected rate of return means the return expected by an investor from asset by investing…

Q: Kraft Heinz stock sells for $40.95 per share. It has 1.22 billion shares outstanding. It has bonds…

A: Weighted average cost of capital is that cost which was borne by the company for using the funds…

Q: 2. 4. Briefly explain the following Time value of money L IL n 0 1 Doarp Difference between simple…

A: Simple Interest is the method in which we calculate the interest on a specific principal amount at a…