Assignment
Mid-Atlantic Specialty, Inc (Case #13, pp. 97-99 of Work Book Gapenski, L. (2012) Healthcare Finance. 5th edition. )
For this assignment, a normal calculator will suffice, but you may use a spreadsheet to assist with calculations.
1. Compare the expected return and coefficient of variation for each of the five investment alternatives listed in Exhibit 13.1.
2. MSI is considering two investment strategies:
a. 50 percent in Project A and 50 percent in project B (Portfolio A/B)
b. 50 percent in Project A and 50 percent in the S&P 500 Fund (Portfolio A/S&P)
3. Compare the risk of the two portfolios. Why does the risk differ?
For reference use the textbook Gapenski, L. (2012) Healthcare Finance. 5th edition.
The response should include a reference list. Double-space, using Times New Roman 12 pnt font, one-inch margins, and APA style of writing and citations.