22) Consider a position of 2,000,000 investment in asset X and 3,000,000 in Investment Y. Daily volatilities for both assets is 0.1% and the correlation coefficient is.30 What is the 10 day 99% VAR? (Closest to! i.e. approximately) A) $59,300 B) $5,931 C) $33,400 D) $30,200

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A: Net Present Value (NPV) is a financial metric used to evaluate the profitability of an investment or…

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Q: The expected average rate of return for a proposed investment of $639,000 in a fixed asset, with a…

A: b. 52.43%

Q: 3. The cash flows for three different alternatives are given in table below. If MARR is set at 8%,…

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A: We have given a graph which indicates the relationship between income earned and the price of the…

Q: Complete the missing variables in the table below; bgs Annual nominal Cmpd/year # years…

A: According to bartleby guidelines , if question involves multiple subparts , then 1st sub 3 parts…

Q: Use the information from this table to find the expected return for each asset.   State of Economy…

A: The table is: State of Economy Probability Return on asset J Return on asset K Boom 30% 5% 24%…

Q: The business units of contractor companies carry out investment expenditures for a capital of…

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Q: Cardinal Company is considering a five-year project that would require a $2,765,000 investment in…

A: Solution: Payback period = Initial investment / Annual cash inflows Simple rate of return = Net…

Q: 21. The Caffeine Coffee Company uses the modified internal rate of return. The firm has a cost of…

A: MIRR is modified internal rate of return. It is an important capital budgeting metric. This metric…

Q: You discover an investment costing $3,000 which has an expected total return of 15% pa, but a…

A: Future value of a investment is the value of that amount after taking into account the time value of…

Q: Compute the payback period for an investment with the following net cash flows. (Round your answer…

A: >Payback period is the amount of time it will take to get the money invested back. >It is…

Q: The data for an investment center is as follows: Current Assets Plant Assets January 1, 2022 $…

A: Current assets are assets in the form of cash or can be converted into cash within a year. Total…

Q: The present worth of a multiyear investment with all positive cash flows (incomes) other than the…

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Q: Use the information from this table to find the covariance for each asset.   State of Economy…

A: Er=p1 x r1+(p2 x r2)+(p3 x r3)+(p4 x r4)E(r)J=0.3 x 5%+0.4 x 5%+0.2 x 5%+0.1×5%=5%E(r)k=0.3 x…

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Q: Use the information from this table to calculate the correlation coefficient for the assets.

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Q: Question: of A proposed new investment has projected sales $842,000. Variable costs are 57 percent…

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Q: Use the information from this table to find the standard deviation for each asset.   State of…

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Q: A project has estimated annual net cash flows of $30,500. It is estimated to cost $115,900.…

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Risk Analysis

Risk management is the entire walkthrough process of helping the organization manage risks or avoid them altogether. It is an in-depth study to determine the risks and uncertainties faced by the business and how these impact the objectives and outcomes of the business. Risk analysis is a procedure of risk assessment followed by the management of an organization to avoid risks that may harm the functioning and efficiency of the company.