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Question 7
The Amelia Knight investment fund has a total capital of R120 000 invested in three shares:
SharesReturnInvestedTechnological Sector25%R60 000Education Sector13%R30 000Mining Sector20%R30 000
The current risk-free rate is 5,5%. Market returns have the following estimated probability distribution for the next period:
ProbabilityMarket return0,3–10%0,1 14%0,2 15%0,4 18%
What is the beta coefficient of the investment fund?
1. 0,52
2. 0,80
3. 1,82
4. 4,92
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- Please show work, Don't Use ExcelWhat is the expected return for the following portfolio? (State your answer in percent with two decimal places.) Stock Expected returns Investment AAA 35% $500,000 BBB 29% $1,300,000 CCC 18% $1,200,000 DDD 7% $1,500,000 O.17.13% O.19.40% O.21.01% O.22.21% O.23.88%Covariance with Mean Return Stock AOL Microsoft Intel AOL .002 .001 15% Microsoft .001 .002 .001 12 Intel 001 .002 10 5.2. Compute the tangency portfolio weights assuming a risk-free asset yields 5 percent.
- Return on risk-free asset = 4.5% Expected return for asset i = 12.75% Expected return on the market portfolio = 9.25% Calculate the risk premium for asset i. A. 3.50% B. 8.25% C. 4.50% D. 4.75% The annual rates of return of Share Z for the last four years are 0.10, 0.15, -0.05, and 0.20. Compute the arithmetic mean annual rate of return for Share Z. Select one: A. 0.04 B. 0.06 C. 0.03 O D. 0.10Stock Beta Current Price Expected Price Expected Dividend X 0.8 $12.50 $13.10 $0.80 Y 1.1 $ 8.25 $ 9.76 $0.20 Z 2.1 $25.70 $30.04 $0.00 The expected price is in one year. The expected market return is 11.5% and the risk-free rate is 4.5%. According to the Capital Asset Pricing Model what rate of return are the stocks expected to earn Are the three stocks overvalued or undervalued in the market today Given the forecast of price and dividend for stock Z, what is its current fair market price based on the CAPM?Stock Dollar investment Beta A $300,000 1.20 B 200,000 1.60 C 500,000 0.65 D 0 -0.20 Total investment $1,000,000 The market's required return is 10% and the risk-free rate is 3%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places.
- The Solace Fund Burrfoot Enterprises Majere Brothers Incorporated Uth Matar Limited Lance Medical Supplies Burrfoot Enterprises Majere Holdings Uth Matar Limited Lance Medical Supplies Total Fund Performance Holding Period Return 58.33% 22.61% -6.95% 5.75% =B5*C5 Required: Using the information in the tables above, please calculate the contribution each stock makes to the portfolio performance. Then calculate overall portfolio performance. (Use cells A3 to C6 from the given information to complete this question.) The Solace Fund Contribution to Portfolio Return 8.75% 6.78% -1.39% Portfolio Weight 2.01% 15% 30% 20% 35%A B с E F Investment Opportunity set for stocks and bonds with varios correlation coeffients SD s SDB 19 8 E(rs) 10 Weight in stocks WS -0.1 0.0 0.1 0.2 0.3 0.4 0.6 0.8 1.0 1.1 D E(TB) 5 Portfolio expected return ws(min) = (GB^2 - OBOSP) / (Os^2 + B^2 - 2*0BÚSP) E(rp) = ws(min) *E(rs)+(1-wg(min))*E(rb) = SDp = G -1 Portfolio Standard Deviation for Given Correlation 0 0.2 0.5 H Minimum Variance Portfolio 1Quantitative Problem: You are holding a portfolio with the following investments and betas: Dollar investment Beta 1.35 1.50 0.85 -0.20 Stock A B с $200,000 100,000 500,000 200,000 Total investment $1,000,000 The market's required return is 11% and the risk-free rate is 4%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places. %
- MC question attachedplease help!QUESTION FIVE (5) a) The daily gain from a portfolio is normally distribute I with mean GHS20,000 cad standard deviation GHS 0.6 million. Using Besarket risk requirements, calculate the value at risk for determining mician capital b) Suppose that the spot price of a non-dividend-paying stock is $50, the 3-month forward price is $55, the 6-month USS interest rate is 10% per annum. Is there an arbitrage opportunity?