Calculate the contribution to total performance from currency, country, and stock selection for the manager in the example below. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places. Input all amounts as positive values.) Europe Australasia Far East Currency Selection Country Selection Stock Selection EAFE Weight 0.60 0.10 0.30 Return on Equity Index 20% 18 25 Profit/Loss dido de % relative to EAFE % relative to EAFE % relative to EAFE E1/E 1.10 0.50 1.30 Manager's Weight Manager's Return 0.48 18% 0.20 16 0.32 16

Calculate the contribution to total performance from currency, country, and stock selection for the manager in the example below. All exchange rates are expressed as units of foreign currency that can be purchased with 1 U.S. dollar. (Do not round intermediate calculations. Round your percentage answers to 2 decimal places. Input all amounts as positive values.) Europe Australasia Far East Currency Selection Country Selection Stock Selection EAFE Weight 0.60 0.10 0.30 Return on Equity Index 20% 18 25 Profit/Loss dido de % relative to EAFE % relative to EAFE % relative to EAFE E1/E 1.10 0.50 1.30 Manager's Weight Manager's Return 0.48 18% 0.20 16 0.32 16

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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E1
Consider an economy with two types of firms, S and I. S firms always move together, but I firms move independently of each other. For both types of firms there is a 40% probability that the firm will have a 20% return and a 60% probability that the firm will have a -30% return. The standard deviation for the return on an individual firm is closest to A) -10.00% B) 24.49% C) 9.80% D) 12.25%
You work for a Space Mountain Rollercoasters, which is a firm whose home currency is the Mexican peso (MXN) and that is considering a foreign investment. The investment yields expected after-tax Turkish lira (TRY) cash flows (in millions) as follows: Year 0 Year 1 -TRY1,100 TRY625 Government bond yield Expected inflation Project required return Year 2 TRY625 Assume that Covered Interest Rate Parity holds and that your firm's management believes that Relative Purchasing Power Parity is the best way to predict future exchange rates over this investment's time horizon. You also have the following information: MXN O a. The gain from hedging with forwards is MXN 67.56 million O b. The gain from hedging with forwards is MXN 69.21 million O c. The gain from hedging with forwards is MXN 66.37 million O d. The gain from hedging with forwards is MXN 65.42 million O e. The gain from hedging with forwards is MXN 67.92 million Year 3 10.16% p.a. 7.00% p.a. 14.811% p.a. TRY625 TRY 14.24% p.a. 12.00%…
Question Z Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line.
Plz solve it’s timed!
Finance These are the quotes from Jan 6, 2021, from Market Watch. How many JPY you need to pay for 1,000,000AUD. (you are selling JPY and buying AUD). Key Currencies Symbol Bid Ask High Low Time(ET) USDJPY 103.1570 103.1670 103.4390 102.5850 13:21:22 USDCHF 0.8799 0.8803 0.8822 0.8757 13:21:17 GBPUSD 1.3613 1.3615 1.3671 1.3543 13:21:22 EURUSD 1.2308 1.2311 1.2351 1.2269 13:21:22 AUDUSD 0.7798 0.7802 0.7820 0.7734 13:21:22 USDCAD 1.2671 1.2676 1.2725 1.2630 13:21:12 EURCHF 1.0833 1.0836 1.0838 1.0798 13:21:22 EURJPY 126.9656 127.0089 127.2511 126.1300 13:21:22 NZDJPY 75.1808 75.2500 75.2974 74.4100 13:21:22 AUDCHF 0.6861 0.6871 0.6872 0.6802 13:21:22 AUDNZD 1.0688 1.0708 1.0710 1.0680 13:21:01 CADJPY 81.3798 81.4198 81.5400 80.9600 13:21:22 EUR= European Euro CHF= Swiss Franc NZD= New Zealand Dollar USD= United States Dollar JPY= Japanese Yen GBP= United Kingdom Pound AUD= Australian Dollar
Suppose Canada in 2018 has GDP per capita that is 80% of that in the U.S. Assume that GDP per capita in the U.S. grows at 2% per year forever, and in Canada it grows at 3% per year forever. In what year will Canada have the same GDP per capita as the U.S.? (Hint: ln(1.25) ≈ 0.22, ln(1.03) ≈ 0.03, and ln(1.02) ≈ 0.02)
4) Calculate the WACC for a firm with the following data: Comparable Firms Firm A Firm B Firm C Risk Free Rate Expected Mkt Return Market Standard Deviation Industry Standard Deviation Most Recent Debt Rating Default Premium Firm's Debt/Equity Ratios Actual Target Firm's Marginal Tax Rate i) 10.075% Correlation Coefficients Market 0.67 0.89 0.77 3.80% 10.30% 17.00% 21.00% 6.50% 0.72 1.63 30% Industry 0.54 0.72 0.66 ii) 14.112% Past Returns Std Deviation iii) 38% 29% 42% 8.672% Tax D/E Rate 0.67 30% 0.29 40% 1.34 30% iv) 11.724%
XYZ has an equity beta of 1.35. XYZ’s equity value is $1,200. XYZ has US dollar net debt of $300 and euro-denominated debt of $700. Assume currency beta of euro is 0.20. What is XYZ’s operating beta?
Scenarios: You work in the macroeconomic research department of an investment bank. Based on your modelling of the economy, you think that in the next few months US GDP will evolve according to three basic scenarios: Scenario A: GDP will rise 3%. This will send the S&P ETF to 414. Scenario B: GDP will stagnate. S&P ETF will stay at 407. Scenario C: GDP will fall 2%. This will send the S&P ETF to 400. Question 1: Compute the payoff and net payoff of a bear spread strategy built with put options in the three scenarios above. The put options should have strikes 405 and 409 and mature in February. Draw the profile of the bear spread strategy. Use the data in Table 2. Please show your calculations. Discuss your result.
Scenarios: You work in the macroeconomic research department of an investment bank. Based on your modelling of the economy, you think that in the next few months US GDP will evolve according to three basic scenarios: Scenario A: GDP will rise 3%. This will send the S&P ETF to 414. Scenario B: GDP will stagnate. S&P ETF will stay at 407. Scenario C: GDP will fall 2%. This will send the S&P ETF to 400. Question 3 You build an “Iron Condor” strategy with February maturity combining the following positions: a long put at 405 a short put at 406 a short call at 408 a long call at 409 Draw the payoff and net payoff of the Iron Condor strategy. Compute the payoff and net payoff of this strategy in the three scenarios. Use the data in Table 2. Please show your calculations. Discuss your result.
Explanation. ...........

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