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Determine the NPV and IRR for the two options described. In each instance, the cash flow data should be at the annual level and extend for five years.
What are the risks that massive FinTech businesses like Ant Banking pose to the financial system?
How much of your client's applicable credit is used by the 2022 gifts only? Use the Unified Federal Estate and Gift Tax Rates table.
DDD is an unlevered firm with a cost of capital of 16.9%. Based on MM Prop II, what will be DDD's weighted average cost of capital if it takes on the debt?
Explain what should the Nunez family have done, and describe how their action could affect them in the future, with respect to the claim.
Explain why gold can help to diversify your portfolio. Then explain at least two ways an investor can gain exposure to gold in the portfolio.
What advantages do insurance companies achieve by many large independent pools of risk instead of a few small ones?
What are the roles that these securities play in the diversification process? What are the advantages of including them in an existing portfolio?
You own a stock portfolio invested 30 percent in Stock Q, 15 percent in Stock R, 10 percent in Stock S, and 45 percent in Stock T. What is the portfolio beta?
If your goal is to create a portfolio with an expected return of 10.2 percent, how much money will you invest in Stock X?
The risk-free rate of return is 49%. If no arbitrage opportunities exist, what is the expected return on portfolio A?
What is the primary reproductive ethical issue involved in the case? How do you think this issue should best be resolved? Explain your answer.
Consider a two-asset portfolio. Calculate the standard deviation (in % and two decimal places) of your portfolio.
What was the market environment that allowed it to happen. What does say about risk/return? Can it happen again? What should investors learn from information?
How do the various tools and techniques of portfolio management work together? Which are the most important, which least?
Give two reasons to support the adoption of your philosophy. Provide some basic information so that your fellow classmates can respond appropriately.
What is the standard deviation of the portfolio? Beta of the portfolio? Firm-specific variance? Covariance?
What is the optimal debt ratio for Coca Cola based on the cost of capital approach and what is its actual debt ratio?
You wish to combine two stocks Encor and Maestro into a portfolio. What is the composition (weights) of the portfolio? What is the portfolio standard deviation?
Identify and explain ways to track information on companies that a potential venture capital fund tends to source?
What is the beta of the share of Unilever With respect to the market? If CAPM holds, What is its expected return of the share of Unilever?
Your company sold call options on a stock. How many shares of stock should you own in your hedging portfolio per call option sold?
Calculate the dividend yield for your Coca-Cola stock at the time you purchased it. Calculate the dividend yield for your Coca-Cola stock at time you sold it.
If the tax rate is 24 percent and the discount rate is 12 percent, what is the NPV of this project?
Explain how ranges should be used to take advantage of future market conditions. What actions should the portfolio managers take if a range is breached?