FIne 518 Term paper

Business 123 Introduction to Investments May I please have the solution for the following writing exercise? Thank you

Question 2 The following is the information for securities of ABC plc and XYZ plc: XYZ plc 26 40 1.25 Particulars Expected return Standard deviation Beta ABC plc 25 42 0.85 The correlation coefficient between the returns of the two securities is 0.70 and standard deviation of the market return is 20%. Required (a) As a new graduate accountant, CPA(T), determine if it is better to invest in securities of ABC plc or XYZ plc (b) If the proportional of investment in ABC plc is 40% and that in XYZ plc is 60% determine the expected rate of return and portfolio standard deviation (c) Determine the risk free rate

Business 123 Introduction to Investments May I please have an expert's solution for the following exercise? Thank you so much

Business 123 Introduction to Investments May I please have the solution for the following assigment? Thank you so much!

Business 123 Introduction to Investments May I please have the best solution for this question? Thank so much,

Question 4                                                                                                     You are an experienced investor in the securities market and you have established an investment portfolio of two blue chips five years ago:  Diamond shares with current market value of $235,000 and Platinum shares with current market value of $355,000.   Required:   a) If your portfolio has provided you with returns of 10.5%, 12.6%, - 11.5%, 14.5% and 15.2% over the past five years, respectively. Calculate geometric average return of the portfolio for this period.  b) Assume that data in the table below is available for your portfolio performance, calculate the expected return, variance and standard deviation of the portfolio?    Diamond Platinum Expected return 16.5% 23.5% Standard Deviation of return 7% 11% Correlation of coefficient (p) 0.45 c) Assume that beta of the Diamond shares in your portfolio is 1.5. The market portfolio expected…

Business 123 Introduction to Investments May I please have the solution for the following exercise? Thank you so much! Dividend Discount Models:Dominion Resources (D), a utility company, is currently paying $2.67 per year in dividends and has done so for many years. We expect it to continue to pay this amount into the future. If our expected rate of return is 5%, how much would we be willing to pay for the stock? Which dividend discount model did you use? With a recent price of Dominion Energy of $57.50, is Dominion Energy a potentially good value according to this model?

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which one is correct? QUESTION 11 Exhibit 1.7 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S)   You purchased 100 shares of GE common stock on January 1, for $29 a share. A year later you received $1.25 in dividends per share and you sold it for $28 a share.   Refer to Exhibit 1.7. Calculate your holding period return (HPR) for this investment in GE stock.   a. 0.9655   b. 1.0973   c. 1.0804   d. 1.0086   e. 1.0357

Business 123 Introduction to Investments May I please have an expert's explanation and solution for the following exercise? Thank you so much,

Business 123 Introduction to Investments May I please have an expert's explanation and solution for the following exercise? Thank you so much,

Solution want to this general account questions

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File Preview Problem 3: Stock Valuation (30 points) You work as a security analyst for a large investment firm. The portfolio manager has asked you whether it is a good idea to buy "ABC" stocks. The current stock price for "ABC" is $345 and the firm has just paid a $14 dividend. You have decided that the dividend discount model is appropriate for your valuation of ABC's stock. After carefully analyzing the firm and all relevant data, your best forecast is that the firm's dividends are expected to remain constant for the next five years. After that, dividends are expected to grow at 15% for 10 years. Following that, the growth is expected to be 3% forever. Assume that the required rate of return is 10%. A) What is the (theoretical) stock value based on the dividend discount model? B) Would you recommend buying the stock? Explain Hint: There are many ways to solve the problem. The simplest approach is to split it into two parts, find the value of each part, and then add the values…

*** 1. Ch12 Financial Planning Exercise 1 eBook Chapter 12 Financial Planning Exercise 1 Ranking investments by expected returns What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns. Round the answers to two decimal places. Do not round intermediate calculations. a. Buy a stock for $45 a share, hold it for 3 years, then sell it for $80 a share (the stock pays annual dividends of $3 a share). d b. Buy a security for $20, hold it for 3 years, then sell it for $60 (current income on this security is zero). Do not round intermediate calculations. % c. Buy a 1-year, 12 percent note for $940 (assume that the note has a $1,000 par value and that it will be held to maturity). Do not round intermediate calculations. Grade it Now Save & Continue Continue without saving NOV 14 O Ctv A W MacBook Air

HI5002 FINANCE FOR BUSINESS Question 4                                                                                                   You are an experienced investor in the securities market and you have established an investment portfolio of two blue chips five years ago:  Diamond shares with current market value of $235,000 and Platinum shares with current market value of $355,000. Required: a)If your portfolio has provided you with returns of 10.5%, 12.6%, - 11.5%, 14.5% and 15.2% over the past five years, respectively. Calculate geometric average return of the portfolio for this period.   b)Assume that data in the table below is available for your portfolio performance, calculate the expected return, variance and standard deviation of the portfolio?    Diamond Platinum Expected return 16.5% 23.5% Standard Deviation of return 7% 11% Correlation of coefficient (p) 0.45   c)Assume that beta of the Diamond shares in your portfolio is 1.5. The…

Business 123 Introduction to Investments May I please have the solution for the following exercise? Thank you so much!   A week later, your colleague comes into your office and is really excited about this new ad he saw in the Los Angeles Times. It says that he can invest in real estate and get a 82% to 12% "preferred" return. He does not really understand what "preferred" means but it sure sounds good to him. He also likes the part that says there is no stock or bond market exposure. It also says that the investment is only offered to "accredited investors." He wonders if that means he has to take a test to invest. What can you tell him about this advertisement?

Business 123 Introduction to Investments May I please have an experts response to the following student's post? Thank you so much,

2. A global equity manager is assigned to select stocks from a universe of large stocks throughout the world. The manager will be evaluated by comparing his returns to the return on the MSCI World Market Portfolio, but he is free to hold stocks from various countries in whatever proportions he finds desirable. Results for a given month are contained in the following table: Country U.K. Japan U.S. Germany Weight in MSCI Index 0.15 0.30 0.45 0.10 Manager's Weight 0.30 0.10 0.40 0.20 Manager's Return in Country 25% 20% 15% 5% Return of Stock Index in Country 14% (FTSE100) 18% (TOPIX) 16% (S&P500) (DAX) 12% a. Calculate the total value added of all the manager's decisions this period. Calculate the value added (or subtracted) by the manager's country allocation b. decisions. ve added for su c. Calculate the value added from the manager's stock selection ability within countries. Confirm that the sum of the contributions to value added from his country allocation plus security selection…