Q1. One of your company's customer has approached you and the customer saysthat he wishes to invest 20,000 OMR. Following data is provided for yourreferenceCompany nameExpected returns RStandard Deviations oEuro Foods20| 10Sohar Foods148.A. Calculate the expected returns for the suggested portfolios as below,PortfolioEuro FoodsSohar Foods1.25%1 75%75%25%3.50%50%B. Calculate the coefficient of variation of shares on Euro Foods and SoharFoods.C.89 F CH/2

Ans: A Portfolio 1:- Expected return = Sum of Weight * Expected return = (.25*20) + (.75*14) = 5 +…

Q1. One of your company's customer has approached you and the customer says that he wishes to invest 20,000 OMR. Following data is provided for your reference Company name Expected returns R Standard Deviations o Euro Foods 20 10 Sohar Foods A. Calculate the expected returns for the suggested portfolios as below, 14 8 Portfolio Euro Foods Sohar Foods 1 25% 75% 75% 25% 3 50% 50% B. Calculate the coefficient of variation of shares on Euro Foods and Sohar wwwwww Foods.

Q1. One of your company's customer has approached you and the customer says that he wishes to invest 20,000 OMR. Following data is provided for your reference Company name Expected returns R Standard Deviations o Euro Foods 20 10 Sohar Foods A. Calculate the expected returns for the suggested portfolios as below, 14 8 Portfolio Euro Foods Sohar Foods 1 25% 75% 75% 25% 3 50% 50% B. Calculate the coefficient of variation of shares on Euro Foods and Sohar wwwwww Foods.

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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You have assigned the following values to these three firms: US Bancorp Praxair Eastman Kodak Price $34.55 37.80 50.35 Upcoming Dividend $ 2.35 1.36 2.00 US Bancorp required return Praxair required return Eastman Kodak required return Growth CAPM 6.20% Assume that the market portfolio will earn 13.30 percent and the risk-free rate is 6.00 percent. Compute the required return for each company using both CAPM and the constant-growth model. Note: Do not round intermediate calculations and round your final answers to 2 decimal places. 0.18 X % 0.24 X % 0.11 % 13.50 13.80 X Answer is complete but not entirely correct. Beta 1.67 2.49 0.64 Constant-Growth Model 0.16 X % 0.18% 0.17
Pls show Every step and concept
Vijay
Suppose the market risk premium is 5% and the risk-free interest rate is 5%. Using the data in the table here, a. Starbucks's stock. b. Hormel's stock. c. Avis Budget Group's stock. Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Hormel 0.16 Avis Budget Group 2.55 Beta Starbucks 1.05 X " calculate the expected return of investing in
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Margin %: Your margin account requires an initial margin of 50%, and a maintenance margin of 30%. You deposit $83,000 cash in a brokerage account and purchase stocks using all available margin and borrowing the rest from your broker. Later, the value of your stock holdings rises to $184,000. What is your percent return? O. 100.00% O. 10.84% O. 121.69% O. 21.69%
pm.4
EXCEL PROJECT AND EXCEL SOLUTION Consider the following stocks, all of which will pay a liquidating dividend in a year and nothing in the interim: Stock A Stock B Stock с Stock D Market Capitalization (5 million) 800 750 950 900 Expected Liquidating Dividend ($ million) 1000 1000 1000 1000 Beta PLEASE SHOW SOLUTIONS IN EXCEL 0.77 1.46 1.25 1.07 a. Calculate the expected return of each stock. b. What is the sign of correlation between the expected return and market capitalization of the stocks? In Problem 20, assume the risk-free rate is 3% and the market risk premium is 7%. a. What does the CAPM predict the expected return for each stock should be? b. Clearly, the CAPM predictions are not equal to the actual expected returns, so the CAPM does not hold. You decide to investigate this further. To see what kind of mistakes the CAPM is making, you decide to regress the actual expected return onto the expected return predicted by the CAPM.49 What is the intercept and slope coefficient of…
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You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Acevedo 36 33.42 Georgette, Incorporated 1,54 69.50 YBH 2.00 14.09 Manta Energy .94 20.74 Winter Sports 32 Hi 77.40 55.81 130.93 50,38 35.00 Stock (Dividends Required retum Dividend Yield PE Ratio Close Price liet Change .24 2.6 3.0 2.2 6.0 4.5 6 10 10 60 13.90 40.43 68.97 15.57 22 -.01 3.07 .26 .18 According to your research, the growth rate in dividends for Manta Energy for the previous 10 years has been negative 14 percent. If Investors feel this growth rate will continue, what is the required return for the stock? Note: A negative answer should be indicated by a minus sign. Do not round intermediate calculations and enter your answer as o percent rounded to 2 decimal places, e.g., 32.16.
You've collected the following information from your favorite financial website. 52-Week Price Lo 10.43 Palm Coal .36 33.52 Lake Lead Grp 1.64 69.50 SIR 2.00 DR Dime.80 Hi 77.40 55.91 130.93 50.24 35.00 Stock (Div) 13.95 20.74 Candy Galore .32 % Div Yld % 2.6 4.0 % 2.2 5.2 1.5 PE Ratio 6 10 10 6 28 Close Price 13.90 40.53 88.97 15.43 ?? Find the quote for the Lake Lead Group. Assume that the dividend is constant. What was the highest dividend yield over the past year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Highest dividend yield What was the lowest dividend yield over the past year? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Lowest dividend yield Net Chg -.24 -.01 3.07 -.26 .18
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