BU5201_Tut 5_Questions

Risk and return You are considering an investment in the stock market and have identified three potential stocks, they are Shanghai Fosun Pharmaceutical Group (HKG: 2196), China Petroleum & Chemical Corporation (HKG: 386) and Commonwealth Bank (ASX: CBA).  The historical prices between 2013 and 2020 in the table below, note that these prices are recorded on the 1st day of the year, for example, 1st of January 2020.  Students assume no dividend is distributed during this period and ignore the exchange rate conversion 1.Calculate the return and risk (standard deviation) of each stock.  Explain the relation (positive or negative) between risk and return based on your answers    2.Calculate the correlation coefficient between (a) Fosun and China Petroleum and (b) China Petroleum and CBA.    3.Calculate the expected (annual) return and standard deviation if you owned a portfolio consisting of 50% in Fosun and 50% in China Petroleum.    4.Calculate the expected (annual) return and…

Hii teacher please given answer general accounting question

quiz 8-16

quiz 8-17

hi teacher help me this question answer general accounting

The investment funds for your company includes the following: Stock $ Amount Invested Beta for Each Stock A $    600,000     .8 B $ 1,800,000     1.4 C $ 2,400,000     1.7 D $    700,000      -.6 E $ 3,000,000      1.1 You need to calculate the required rate of return for the investment. The market’s required return for Year 2020 is 12% and the risk free rate is 3% Show your work on the following: Calculate the average beta for the portfolio. Calculate the required rate of return for the entire portfolio. The CFO of your company is anticipating that the stock market will be decreasing in the near future. Please give a recommendation on which stock the company should sell and which stock the company should buy.  The CFO also wants you to explain your answer.

quiz 8-16

Hello tutor please help me with accounting questions

Subject:- finance

Q2: A private investment club has $200,000 earmarked for investment in stocks. To arrive at an acceptable overall level of risk, the stocks that management is considering have been classified into three categories: high risk, medium risk, and low risk. Management estimates that high-risk stocks will have a rate of return of 15%/year; medium-risk stocks, 10%/year; and low-risk stocks, 6%/year. The members have decided that the investment in low-risk stocks should be equal to the sum of the investments in the stocks of the other two categories. Determine how much the club should invest in each type of stock if the investment goal is to have a return of $20,000/year on the total investment. (Assume that all the money available for investment is invested.) Note: Develop the linear system of equations from the above theory and solve the system by Gauss Jordon Method.

Hi teacher please help me this question general accounting

Hello tutor please give me correct answer general Accounting

Question is in the picture

The book I use for study: Principles of Managerial Finance [Global Edition] 16th Edition. Chad J. Zutter & Scott B. Smart Questions in image

Hello tutor provide solution for this financial accounting question

Capital Assets Pricing Model (CAPM) (20 points) 4. You have landed an interview with Gold & Silver Bank, and they are asking you to calculate the expected return on a series of assets they are evaluating. They provide the data below and have sent you a few additional questions. Risk-free rate 5.26% Stock Expected Return Betas ALMM 45.32% 9.2 AIR 34.10% 5.1 BLUE 61.20% 3.7 87.20% 4.5 MON Given the expected return on an asset, E(Ri), is equal to the risk-free rate, Rf, plus the risk premium. - E(R)=R₂+ [E(RM) – Rƒ] × Bi What is each stock's expected return, E(Ri)? Provide the result as x.xx%.

May I know the answer ?

Finance   Note:- Do not provide handwritten solution. Maintain accuracy and quality in your answer. Take care of plagiarism. Do not provide Excel Screet shot rather use tool table Answer completely.

Subject: financial accounting

Hello tutor please given Financial accounting question answer do fast and properly explain all answer

Explain well with proper answer.

hi teacher provide answer this General accounting question