Caleb Coyle FIN 341, Winter 2024 - Homework #2

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Q3a   Please assist to answer Q3a in detail write up

quiz 8-17

Question 5  In class, we discussed the CAPM model and its implications. What is the market portfolio? What assets does the model price? Is the S&P 500 a good proxy for the market portfolio, and if not, why? Please elaborate.

1 . Which investor type would most likely have high tolerance for risk, long investment horizon, and low liquidity needs? a) pension funds b) commercial banks c)individuals d) mutual funds 2. Which manager most likely receives the highest compensation through fees? a) passive manager b) fixed income asset manager c) smart beta manager d) alternative asset manager 3. A no-load mutual fund will most likely charge which of the following fee? a) redemption fee b) up front fee c) management fee d) all of the above 4. The diversification between any two assets most likely to occur when which of the following conditions is met? a) Correlation between the two assets is less than 1.0 b) Correlation between the two assets is greater than 1 c) Correlation between the two assets is strictly negative d) Correlation between the two assets is strictly zero 5. When the economy is at the lowest point of the business cycle (the "through"), which are the best industries to invest in? a) Cyclical…

Question 5 A hedge fund may charge a special performance fee which commonly ranges from: O 10 to 15 percent of NAV. 15 to 20 percent of the fund's profits. 20 to 30 percent of NAV. 20 to 40 percent of the market price. 20 to 40 percent of the fund's profits.

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INTEREST RATE DETER MINAT ION Maria Juarez is a professional tennis player, and your firm manages her money. She has asked you to give her information about what determines the level of various interest rates. Your boss has prepared some questions for you to consider.a. What are the four most fundamental factors that affect the cost of money, or the general level of interest rates, in the economy?b. What is the real risk-free rate of interest (r*) and the nominal risk-free rate (rRF)? How are these two rates measured?c. Define the terms inflation premium (IP), default risk premium (DRP), liquidity premium (LP), and maturity risk premium (MRP). Which of these premiums is included in determining the interest rate on (1)short-term U.S. Treasury securities, (2) long-term U.S. Treasury securities, (3) short-term corporatesecurities, and (4) long-term corporate securities? Explain how the premiums would vary over timeand among the different securities listed.d. What is the term structure of…

GE MINDTAP Q Search this course jian 1 naining: 1:57:34 Save Is Which of the following statements is CORRECT, other things held constant? O a. If expected inflation increases, interest rates are likely to increase. O b. Interest rates on all debt securities tend to rise during recessions because recessions increase the possibility of bankruptcy, hence the riskiness of all debt securities. O c. If companies have fewer good investment opportunities, interest rates are likely to increase. O d. Interest rates on long-term bonds are more volatile than rates on short-term debt securities like T-bills. O e. If individuals increase their savings rate, interest rates are likely to increase. e here to search IN

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Question A A hedge fund manager pursuing a high-risk portfolio construction strategy is least likely to invest in:     A.    Fixed income security issued by a municipality.    B.    52-week Treasury bill.    C.    Shares of stock in a financial institution.    D.    An apartment building.  Full explain this question and text typing work only     We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line.    .  Fast

Finance 3

QUESTION 2 Exhibit 6.2 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   Asset (A) Asset (B) E(RA) = 25% E(RB) = 15% (σA) = 18% (σB) = 11% WA = 0.75 WB = 0.25 COVA,B = −0.0009   Refer to Exhibit 6.2. What is the expected return of a portfolio of two risky assets if the expected return E(Ri), standard deviation ( σ i ), covariance (COVi,j), and asset weight (Wi) are as shown above?   a. 18.64%   b. 22.5%   c. 11%   d. 13.65%   e. 20.0%

Sh4 Please help me  Solution