Worksheet Assignment # 3 (1)
docx
keyboard_arrow_up
School
Washington State University *
*We aren’t endorsed by this school
Course
101
Subject
Finance
Date
Jan 9, 2024
Type
docx
Pages
6
Uploaded by ConstableJellyfish18213
WORKSHEET ASSIGNMENT # 3
Risk and Return (9 points)
Due by Monday, October 9
th
, 11:59 pm (PT)
Instructions
Answer the questions in this worksheet as you attend the lectures. The
questions on this worksheet are usually the same questions the class is
answering during the lecture, so you will have the opportunity to work along
with the lecture during class time. Upload the worksheet on Canvas when
you have completed the questions. You will get a full answer sheet to check
your working as soon as you upload your worksheet. You can keep this
worksheet for yourself and use it to study for the exam or when completing
the homework assignments.
Grading
You will receive full grades so long as you make a genuine attempt to answer
the questions. A genuine attempt means that
you must demonstrate that
you have attended the lectures related to this particular worksheet.
Given that the same questions are being answered during the lectures, your
responses should reflect what is covered and provided in the lectures.
Whenever calculations are required, you must show your working. Points will
be deducted if you only give the final answer without showing your working
regardless of giving the correct answer.
So long as you make a genuine attempt (as explained above), points will not
be automatically deducted when some of your responses are incorrect. Think
of this as a chance to practice your new knowledge... and have fun!
After you submit your worksheet, you will receive the correct answers in an
announcement on Canvas. Make sure to compare your responses with the
answer sheet to check your understanding of the material.
Questions
1.
Risk premium __
?
Future uncertainty (risk of time) __
?
Total risk __.
2.
Risk premium __
?
Credit quality (level of risk) __
?
Total risk __.
3.
What is the relationship between credit quality and total risk?
4.
What is the relationship between the length of time invested and total risk?
SPMGT 374
1
5.
Would you purchase the Detroit Lions? Under what conditions?
6.
Calculate the stand-alone expected ROR for the Jaguars:
Projected return
(k) (in Millions)
Probability (P)
Probable return
(k x P)
High
$154.7
0.40
Average
$134.5
0.40
Low
$119.0
0.20
Expected ROR
7.
Calculate the stand-alone expected ROR for the Dolphins:
Projected return
(k) (in Millions)
Probability (P)
Probable return
(k x P)
High
$163.5
0.15
Average
$142.5
0.50
Low
$134.5
0.35
Expected ROR
8.
Which franchise would you invest in? Do we have enough information to make this
decision?
9.
Calculate the Portfolio expected rate of return of the five franchises listed below:
USE THE WHOLE NUMBER/ DON’T CONVERT INTO DECIMALS
SPMGT 374
2
Investment
Probability (k)
Probable
Return (w x
k)
Franchise A
$200,000
0.2
10.0%
2%
Franchise B
$200,000
0.2
9.5%
1.9%
Franchise C
$200,000
0.2
11.5%
2.3%
Franchise D
$200,000
0.2
3.5%
0.7%
Franchise E
$200,000
0.2
6.0%
1.2%
Total
$1,000,000
Expected
ROR
8.1%
10.Calculate the Portfolio expected rate of return when the Lions are added to the
portfolio:
Investment
Probability (k)
Probable
Return (w x
k)
Franchise A
$200,000
0.1
10.0%
1
Franchise B
$200,000
0.1
9.5%
0.95
Franchise C
$200,000
0.1
11.5%
1.15
Franchise D
$200,000
0.1
3.5%
0.35
Franchise E
$200,000
0.1
6.0%
0.60
Lions
$1,000,000
0.5
7.0%
3.5
Total
$2,000,000
Expected
ROR
7.55%
11.Would you invest in the Lions? Why or why not?
12.Calculate the Expected ROR-SD for the Jaguars
SPMGT 374
3
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Projected
return (k)
Proba
bility
(P)
Deviations
Deviations
2
Variance
High
$154.7
0.40
Average
$134.5
0.40
Low
$119.0
0.20
Expected
rate of
return
$139.47
13.What is the range of dollar return that the Jaguars would fall in, approximately 95%
of the time? Show your calculations.
14.Calculate the Expected ROR-SD for the Dolphins
Projected
return (k)
Proba
bility
(P)
Deviations
Deviations
2
Variance
High
$163.5
0.15
Average
$142.5
0.50
Low
$134.5
0.35
Expected
rate of
return
$142.8
15.What is the range of dollar return that the Dolphins would fall in, approximately 95%
of the time? Show your calculations.
SPMGT 374
4
16.Calculate the Coefficient of variation (CV) for the Jaguars
17.Calculate the Coefficient of variation (CV) for the Dolphins
18.Which franchise would you purchase? Why?
19.Calculate the Beta of Kates Portfolio
Investment
(in Millions)
Beta
Weighted
Beta
Team A
$130
0.3
Team B
$160
1.5
Facility C
$70
3.2
Facility D
$90
2.0
Team E
$50
1.0
Total
$500
Portfolio Beta
20.What rate of return should Kate expect from this portfolio?
21.Calculate the Beta of Donna’s Porfolio
SPMGT 374
5
Investment
(in Millions)
Beta
Weighted
Beta
Team F
$100
0.5
Team E
$100
1.0
Facility G
$100
0.3
Total
$300
Portfolio Beta
22.What rate of return should Donna expect from this portfolio?
23.Calculate the Beta of Donna’s Porfolio now that she has changed her investments in
each team
Investment
(in Millions)
Beta
Weighted
Beta
Team F
$90
0.5
Team E
$160
1.0
Facility G
$50
0.3
Total
$300
Portfolio Beta
24.What rate of return should Donna expect from this portfolio?
25.Calculate the Beta of Donna’s Porfolio now that the Beta has changed for one of her
investments
Investment
(in Millions)
Beta
Weighted
Beta
Team F
$90
0.5
Team E
$160
1.0
Facility C
$50
3.2
Total
$300
Portfolio Beta
26.What would Donna need to ensure in terms of her portfolio return to justify investing
part of her portfolio in facility C?
SPMGT 374
6
Your preview ends here
Eager to read complete document? Join bartleby learn and gain access to the full version
- Access to all documents
- Unlimited textbook solutions
- 24/7 expert homework help
Related Documents
Related Questions
Unit VI Assignment Instructions: This assignment involves answering a series of questions, and each question provides you with an opportunity to accomplish the following course learning outcome: 8. Critique interview techniques. Be sure to answer each question, save all of your work in this template, and submit it in Blackboard for grading. 1. After answering the last question, Jason said thank you and the interview was over. Briefly describe one or more techniques that Jason could have used to improve the conclusion of his interview. Your response should be at least 75 words. 2. Danielle was interviewing for a position, and the interviewer asked for her salary requirements. As Danielle was not expecting to hear that question, she mumbled for a minute before eventually saying $40,000.00, which is low for someone with her experience. Briefly describe one or more techniques…
arrow_forward
hre.7
arrow_forward
Hi there! I've been stuck on these two problems for > two hours now and I'm not at all sure what to do. Is there any way someone can help me?
arrow_forward
experience during your exam
m. You will be given an additional ten minute submission window to allow you submit your exam to mitigate for any tecce 5sues you m
Click Save and Submit once you have completed the exam.
Itiple
empts
Not allowed. This Test can only be taken once.
rce
mpletion
This Test can be saved and resumed later.
Your answers are saved automatically.
Question Completion Status:
Close Window
A Moving to another question will save this response.
Question 2
«Question 2 of 10
Goremann Corp (GC) has a total market value of $524 million. The market value of equity is $300 million and the company carries debt valued at $224 million. The before-tax cost of debt is 9
percent and the cost of equity is estimated at 14 percent. The statutory company tax rate is 35 percent. What is the weighted-average cost of capital for the company closest to?
O A. 9.34%.
O B. 10.52%.
3 points
Save Answer
O C. 11.63%.
O D. 12.05%.
A Moving to another question will save this response.
Question 2 of…
arrow_forward
myOpenMath
Course Messages Forums Calendar | Gradebook
Home > Math 173-4 Spring 2024> Assessment
Quiz 2 (Sec. 1.5-1.7)
54 points possible 5/12 answered
Question 6
The graph of the function
y = f(x - 39)
can be obtained from the graph of
y = f(x)
by one of the following actions:
> Next Question
Home | My
Oshifting the graph of f(x) to the right 39 units
shifting the graph of f(x) to the left 39 units
shifting the graph of f(x) upwards 39 units
shifting the graph of f(x) downwards 39 units
arrow_forward
1. Journal all transactions in Part One 2. Using the chart of accounts, open ledger accounts and post journals to the ledger account. 3. Prepare a trial balance 4. Prepare the following statements: 1. Income Statement 2. Retained Earnings Statements 3. Balance Sheet You need to use Microsoft Excel. Do not use Google Docs or Apple’s numbers. Place your submission in the appropriate journal labeled final project in the learning modules tab in Blackboard. The project is due in Module 15. Three points extra credit to final grade if submitted during Module 14. Part One A. The following transaction occurred for Scrooge Inc. for the month of December 31, 1820. B. Ebenezer Scrooge invested $50,000 cash along in the company in exchange for common stock. C. The company prepaid $500 for 12 month’s rent. D. The company purchased $100 in office supplies. Payment due withing 10 days E. Scrooge Inc. completed services for a client and immediately received $2,000. F. The company completed $1,500…
arrow_forward
Im having trouble with this accounting problem.
arrow_forward
os.schoolsplp.com/enrollments/156569804/items/YUI32/work?prev3LNSDS
O Western Brown Loc.
Desmos | Graphing. A ALEKS- Gracie Glov.
M My Classes | McGra. A Classes
Next Activity >
els B: Lesson 1 - Salary
Target due: 1/14/21 58.33%
$344.75
$700
2) Choose the best answer.
Caleb has a job that pays $11.15 per hour for a 40-hour work week. He is paid time
and a half for every hour over 40 that he works in a week. What will his gross pay be
for a week in which he works 46 hours?
NTT
$546.35
$446
$512.90
$256.45
$769.35
O O O
O O
arrow_forward
How do I figure the gross up amount and regular gross pay per period?
arrow_forward
help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all working
arrow_forward
Eat
min
C
e
New tab
Λ Content
xW Quiz 3-MAT-143, section 03F, Fa X
+
Q
A ✩
https://www.webassign.net/web/Student/Assignment-Responses/last?dep=34832472
Viewing Saved Work Revert to Last Response
DETAILS
MY NOTES
You deposit $850 in an account paying an annual simple interest rate of 7.8%. Find the future value of the investment (in dollars) after 1 year.
DETAILS
MY NOTES
Calculate the simple interest due (in dollars) on a 40-day loan of $1,600 if the annual interest rate is 9%. (Use 360 days in 1 year.)
$
DETAILS
MY NOTES
arrow_forward
Assignment 6.1: Session 6 Comprehensive Problem (Chapter 8)
Instructions
In this session, we have a 6-part comprehensive problem. Download the Session 6 Comprehensive Problem Templates below to complete the 6 required parts of the problem. You will need your Bergevin and MacQueen book for reference.
Rancho Cucamonga Inc. began business on January 1, 2020. The firm earned $100 from sales in its first year of business. Rancho Cucamonga collected $90 of revenue earned in cash during 2020 and reported a $10 account receivable on its 2020 balance sheet. The firm paid $70 cash for operating expenses in 2020 and reported a $5 account payable for unpaid operating expenses on its 2020 balance sheet. Income tax laws only recognize cash collected from sales and cash paid for expenses as taxable items in the year collected or paid.
Rancho Cucamonga also reported a $10 fine, paid in cash, to the federal government for unfair business practices. Generally accepted accounting principles allow firms…
arrow_forward
Lesson 6Posting the Journal Entry to the T-Accounts
Learning Outcomes:Students are expected to:1. Post the journal entries into the T-accounts2. Determine the exact amount of the account
On Jul1 1, 2016, Mr. Jan Jacob C. Solon opened the Hubbies Hair and Beauty Salon. The following transactions took place during the first month of operation:July 1 - Php 200,000.00 was invested by the owner.- Paid installation of utilities, Php 7,200.002 - Paid business permits and licenses to the government, Php 3,500.00Paid advance rent for the salon space, Php 10,000.003 - Purchased equipment on account amounting to Php 85,000.00 - Purchases salon supplies in cash, Php 25,000.005 - Served various customers and received cash, Php 9,600.007 - Rendered services, Php 12,000.00 and only 9,000 cash was received. The rest was on account.10 - Received cash, Php 8,200.00 from various customers.13 - Received Php 23,500.00 cash from various customers while Php 2,400.00 worth of services were…
arrow_forward
+
wbbroncos.schoolsplp.com/enrollments/156569804/items/YUI32/work?prev=LNSDS
B. Jol Desmos | Graphing. A ALEKS - Gracie Glov. M My Classes | McGra.
A Classes
O Western Brown Loc.
Glover
Next Act
n Models B: Lesson 1 - Salary
Target due: 1/14/21 58
3) Choose the best answer.
Andi has a job that pays $27.35 per hour for a 40-hour work week. She is paid time
and a half for each hour over 40 that she works in a week. She is paid biweekly. What
is her gross pay for a paycheck where she worked 40 hours in each of the two weeks
for a total of 80 hours?
$2,215.35
ST
O $2,735.00
$3,283.00
$2,188.00
O $1,641.00
4) Choose the best answer.
arrow_forward
Screenshot of question is attached.
thanks in advance
arrow_forward
S Math Models B
A wbbroncos.schoolsplp.com/enrollments/156569804/items/YU132/work?prev=LNSDS
Classes
* Western Brown Loc.
A Planner - ProgressB.
S Desmos | Graphing.
A ALEKS - Gracie Glov.
M My Classes | McGra.
Gracie Glover
Math Models B: Lesson 1 - Salary
Next Activity >
Cont
↑ Cour
v Unit
Target due: 1/14/21 58.33%
7) Choose the best answer.
What is the gross annual pay for Saul if he works 40 hours each week but also works
4 hours of overtime every two weeks? (Saul makes $27.35 an hour and gets time and
a half for overtime.)
$61,154.60
O $57,052.10
NIT
AM
O $4,266.60
OH
uis
$65.421.20
O $56,888
O D 8) Choose the best answer.
Caleb has worked hard and is offered a salaried position with the same company. He
is offered $28,000, but will be expected to work 44 hours per week with no overtime
pay. How much would he be paid per year if he remained in his present job and
arrow_forward
Here is the format, this is the homework assingment.
arrow_forward
How many hours of Irene Bentley's courses qualify for the Yellow Book 24-hour requirement? (Note: only insert the number of qualifying numbers, e.g., 16).
arrow_forward
SEE MORE QUESTIONS
Recommended textbooks for you

Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning
Related Questions
- Unit VI Assignment Instructions: This assignment involves answering a series of questions, and each question provides you with an opportunity to accomplish the following course learning outcome: 8. Critique interview techniques. Be sure to answer each question, save all of your work in this template, and submit it in Blackboard for grading. 1. After answering the last question, Jason said thank you and the interview was over. Briefly describe one or more techniques that Jason could have used to improve the conclusion of his interview. Your response should be at least 75 words. 2. Danielle was interviewing for a position, and the interviewer asked for her salary requirements. As Danielle was not expecting to hear that question, she mumbled for a minute before eventually saying $40,000.00, which is low for someone with her experience. Briefly describe one or more techniques…arrow_forwardhre.7arrow_forwardHi there! I've been stuck on these two problems for > two hours now and I'm not at all sure what to do. Is there any way someone can help me?arrow_forward
- experience during your exam m. You will be given an additional ten minute submission window to allow you submit your exam to mitigate for any tecce 5sues you m Click Save and Submit once you have completed the exam. Itiple empts Not allowed. This Test can only be taken once. rce mpletion This Test can be saved and resumed later. Your answers are saved automatically. Question Completion Status: Close Window A Moving to another question will save this response. Question 2 «Question 2 of 10 Goremann Corp (GC) has a total market value of $524 million. The market value of equity is $300 million and the company carries debt valued at $224 million. The before-tax cost of debt is 9 percent and the cost of equity is estimated at 14 percent. The statutory company tax rate is 35 percent. What is the weighted-average cost of capital for the company closest to? O A. 9.34%. O B. 10.52%. 3 points Save Answer O C. 11.63%. O D. 12.05%. A Moving to another question will save this response. Question 2 of…arrow_forwardmyOpenMath Course Messages Forums Calendar | Gradebook Home > Math 173-4 Spring 2024> Assessment Quiz 2 (Sec. 1.5-1.7) 54 points possible 5/12 answered Question 6 The graph of the function y = f(x - 39) can be obtained from the graph of y = f(x) by one of the following actions: > Next Question Home | My Oshifting the graph of f(x) to the right 39 units shifting the graph of f(x) to the left 39 units shifting the graph of f(x) upwards 39 units shifting the graph of f(x) downwards 39 unitsarrow_forward1. Journal all transactions in Part One 2. Using the chart of accounts, open ledger accounts and post journals to the ledger account. 3. Prepare a trial balance 4. Prepare the following statements: 1. Income Statement 2. Retained Earnings Statements 3. Balance Sheet You need to use Microsoft Excel. Do not use Google Docs or Apple’s numbers. Place your submission in the appropriate journal labeled final project in the learning modules tab in Blackboard. The project is due in Module 15. Three points extra credit to final grade if submitted during Module 14. Part One A. The following transaction occurred for Scrooge Inc. for the month of December 31, 1820. B. Ebenezer Scrooge invested $50,000 cash along in the company in exchange for common stock. C. The company prepaid $500 for 12 month’s rent. D. The company purchased $100 in office supplies. Payment due withing 10 days E. Scrooge Inc. completed services for a client and immediately received $2,000. F. The company completed $1,500…arrow_forward
- Im having trouble with this accounting problem.arrow_forwardos.schoolsplp.com/enrollments/156569804/items/YUI32/work?prev3LNSDS O Western Brown Loc. Desmos | Graphing. A ALEKS- Gracie Glov. M My Classes | McGra. A Classes Next Activity > els B: Lesson 1 - Salary Target due: 1/14/21 58.33% $344.75 $700 2) Choose the best answer. Caleb has a job that pays $11.15 per hour for a 40-hour work week. He is paid time and a half for every hour over 40 that he works in a week. What will his gross pay be for a week in which he works 46 hours? NTT $546.35 $446 $512.90 $256.45 $769.35 O O O O Oarrow_forwardHow do I figure the gross up amount and regular gross pay per period?arrow_forward
- help please answer in text form with proper workings and explanation for each and every part and steps with concept and introduction no AI no copy paste remember answer must be in proper format with all workingarrow_forwardEat min C e New tab Λ Content xW Quiz 3-MAT-143, section 03F, Fa X + Q A ✩ https://www.webassign.net/web/Student/Assignment-Responses/last?dep=34832472 Viewing Saved Work Revert to Last Response DETAILS MY NOTES You deposit $850 in an account paying an annual simple interest rate of 7.8%. Find the future value of the investment (in dollars) after 1 year. DETAILS MY NOTES Calculate the simple interest due (in dollars) on a 40-day loan of $1,600 if the annual interest rate is 9%. (Use 360 days in 1 year.) $ DETAILS MY NOTESarrow_forwardAssignment 6.1: Session 6 Comprehensive Problem (Chapter 8) Instructions In this session, we have a 6-part comprehensive problem. Download the Session 6 Comprehensive Problem Templates below to complete the 6 required parts of the problem. You will need your Bergevin and MacQueen book for reference. Rancho Cucamonga Inc. began business on January 1, 2020. The firm earned $100 from sales in its first year of business. Rancho Cucamonga collected $90 of revenue earned in cash during 2020 and reported a $10 account receivable on its 2020 balance sheet. The firm paid $70 cash for operating expenses in 2020 and reported a $5 account payable for unpaid operating expenses on its 2020 balance sheet. Income tax laws only recognize cash collected from sales and cash paid for expenses as taxable items in the year collected or paid. Rancho Cucamonga also reported a $10 fine, paid in cash, to the federal government for unfair business practices. Generally accepted accounting principles allow firms…arrow_forward
arrow_back_ios
SEE MORE QUESTIONS
arrow_forward_ios
Recommended textbooks for you
- Excel Applications for Accounting PrinciplesAccountingISBN:9781111581565Author:Gaylord N. SmithPublisher:Cengage Learning

Excel Applications for Accounting Principles
Accounting
ISBN:9781111581565
Author:Gaylord N. Smith
Publisher:Cengage Learning