BUSI 2093 | UNIT 9 | Risk and Return QUESTION 3.1 I would like a portfolio that is broadly diversified. What four asset groups would you suggest to create this portfolio? (Drag and drop your answers into the box below.) Short term Government of Canada bonds A broad range of Canadian equities Canadian energy stocks Cryptocurrency Emerging market stocks Some global equities including US, Europe and Asia Gold Long term corporate bonds 1 234 Submit

BUSI 2093 | UNIT 9 | Risk and Return QUESTION 3.1 I would like a portfolio that is broadly diversified. What four asset groups would you suggest to create this portfolio? (Drag and drop your answers into the box below.) Short term Government of Canada bonds A broad range of Canadian equities Canadian energy stocks Cryptocurrency Emerging market stocks Some global equities including US, Europe and Asia Gold Long term corporate bonds 1 234 Submit

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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ces Problem 6-14 (Algo) Suppose that many stocks are traded in the market and that it is possible to borrow at the risk-free rate, rf. The characteristics of two of the stocks are as follows: Correlation = -1 Rate of return Stock A B Required: a. Calculate the expected rate of return on this risk-free portfolio? (Hint: Can a particular stock portfolio be formed to create a "synthetic" risk-free asset?) (Round your answer to 2 decimal places.) Yes No Expected Return 5% 10% % Standard Deviation 45% 55% b. Could the equilibrium rf be greater than rate of return?
Question content area top Part 1 (Capital asset pricing model) Anita, Inc. is considering the following investments. The current rate on Treasury bills is 7 percent, and the expected return for the market is 12.5 percent. Using the CAPM, what rates of return should Anita require for each individual security? Stock Beta H 0.71 T 1.62 P 0.89 W 1.37 (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 a. The expected rate of return for security H, which has a beta of 0.71, is enter your response here%. (Round to two decimal places.) Part 2 b. The expected rate of return for security T, which has a beta of 1.62, is enter your response here%. (Round to two decimal places.) Part 3 c. The expected rate of return for security P, which has a beta of 0.89, is enter your response here%. (Round to two decimal places.) Part 4 d. The expected rate of return for…
Q4 need urgent
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
#20
Hello can you show how to calculate the risk free rate
| Technology Services | VCU Security Treasury AAA Corporate BBB Corporate B Corporate Consider the following yields to maturity on various one-year, zero-coupon securities: 0.60% The credit spread of the single B corporate bond is closest to 1.10% 1.40% virginiacommonwealth.instructure.com 0.80% 1.60% Yield (%) 5.0 5.2 5.8 6.6 Video Quiz Chapter 6: FIRE 311 Sec Review Video Lecture Part 6.5
470 -37 Assume that the dividend payout ratio will be 55 % when the rate on long term government bonds falls to 9%. Since investors are becoming more risk averse, the equity risk premium will rise to 8% and investors will require a 7% return. The return on equity will be 13%. What is your expectation of the market P/E ration? a. 37.69 b. 24.92 c. 58.15 d. 55.02 e. 47.82
Question 15: You're half-way through preparing the following table of CAPM betas and expected returns: Asset Government bonds ASX200 ETF Westpac Ltd (WBC) CSL Ltd Beta ? ? 0.82 0.21 Expected return pa 0.04 0.1 ? ? Which of the below statements is NOT correct? (a) Government bonds have a zero beta. (b) The ASX200 market portfolio has a beta of one. (c) Westpac's expected return is 8.92% pa (d) CSL's expected return is 5.26% pa. (e) If the ASX200 were to fall by 10% today, government bonds would be expected to fall 4%.
Please solve M14 and M15
Match the words with the term. Question 14 options: 12345 venture capital 12345 quality of security to satisfy investors 12345 long term debt financing 12345 uncertainty 12345 share versus debt financing 1. business risk 2. instrument risk 3. risk capital 4. bond 5. financial risk
quiz 8-17

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