Suppose that you have access to two funds. Fund 1 has a ČAPM beta of 0.4, Fund 2 has a CAPM beta of 1.9. Fund 1 has an average roturn of 8 50/ and Eund 2 b as an -y

Q: just e and f

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A: OUTCOME PROBABILITY FUND M FUND N FUND P A 10.00% -10.00% -25.00% 10.00% B 30.00% 8.00% 10.00%…

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Q: Find the numerical value of the factor (A/P, 30%,22).

A: We have; Capital Recovery function (A/P,30%,22) To Find: Numerical Value of the Function

Q: Calculate the covariance of the following ex-ante returns. Express your answer as a decimal with…

A: Introduction:Let us denote P=ProbabilityReturn A=XReturn B=YFormula to be…

Q: $1.20 1.30 0.8 0.9 1.1 Pulangan Geometrik = _% Geometric return= _%

A: To determine the geometric mean, we first need to compute the change in price using the formula…

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A: An investment fund is an investment avenue that helps individual investors to invest a small amount…

Q: c,d,e and f with explanation (working out)

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Q: a,b c and d please

A: Detailed explanation:Let's delve deeper into the economic principles and the solution process…

Q: The average return, standard deviation, and beta for Fund A is given below along with data for the…

A: Jensen's alpha = Average return less CAPM return of stock

Q: Prob. of state S&P 500 Technology T-Bills -15% State International Fund + 1% GDP .25 8% 5% 30% + 2%…

A: Expected return of the market could be computed by multiplying the returns under different economic…

Q: harpe’s ratio of the Fund A is 1.5, if the beta of Fund A is 1.2, and risk of the fund is 10,…

A: Solution Given Sharpe’s ratio of the Fund A 1.5  beta of Fund A 1.2 risk of the fund…

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Q: Consider the following payoff table: DA: Decision Alternative. State of Nature Decision Alternative…

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Q: Four assets have the following distribution of returns. Probability…

A: ACCORDING TO THE RULE,WE WILL ANSWER THE FIRST THREE SUBPARTS ONLY. FOR THE REMAINING SUBPARTS,…

Q: Suppose an investment is equally likely to have a 24% retu - 8% return, or a 6% return. The expected…

A: r1=24%r2=-8%r3=6%All equal likely

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Q: Suppose there are 3 agents i E(1, 2, 3) with preferences over 3 objects j ela, b, c} as follows:…

A:

Q: Calculate :  M2 measure T2 measure Information Ratio (appraisal ratio) Fund  Average return…

A: Since you have posted a question with multiple sub-parts, we will solve first three sub parts for…

Q: Given the forward rate f3,6 = 6% and the forward rate f6,8 = 2%, calculate the forward rate f3,8.…

A: A forward rate is a financial term used to describe the interest rate applicable to a financial…

Q: Consider the model,                                C = N(d1)St − N(d2)Ke−rt, where…

A: Options are the contracts that provide the buyer the exercising rights of the contract at the date…

Q: Future values. Fill in the future values for the following table, using one of the three methods…

A: The future value can be computed using the future value formula which uses the present value, the…

Q: Simple interest of i= 4% is being credited to a fund. In which period, n, is this equivalent to an…

A: Effectiive rate, in = 2.5% = 0.025Simple interest, i =4% =0.04n=?

Q: The most liquid money aggregate is? Select one alternative: M0 M1 M2

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Q: Investment A has a future value of $400.  Investment B has a future value of $500. Both have the…

A: Step 1 The amount of interest due each period expressed as a percentage of the amount lent,…

Q: need the following funds ranked best to least and the data supporting why! JSVAX MFCAX EARGX FOVAX…

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Q: Use the future value formula to find the indicated value. n = 36; i = 0.05; PMT= $111; FV = ? FV=$…

A: Future value is the compounded value of each cash flow.   We will use future value of ordinary…

Q: Index. Fund Average Return Standard Deviation Beta A 14% 28.5% 1.7 S&P 500 17.6% 19.4% 1 Risk-free…

A: treynor ratio =rA-rfβA where, rA=return of stock Arf=risk free rateβA=beta of stock A

Q: Use the formula . Calculate FV for each set of values.     R = $100, i=0.025, n = 15 R = $200, i=,…

A: The questions in part 2 and 3 do not consist of interest rate (i). Hence assuming random values for…

Q: ouiput belowe penarted from regreseing Pund As excees returns on s ecs retums (BAP S00). Tetimate…

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Q: If a fund has a return of 12% and a beta of 1.4, and if the risk-free rate is 2%, then what is its…

A: Treynor ratio measures excess of return generated over risk free rate per unit of risk .

Q: Select all the correct statements. The internal rate of return (IRR) generated by a positive cash…

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Q: v(x) = x for gains and v(x) = -2|x| for losses.

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Q: I get beta in step 1 to 1,5 since you have to subtract rm - rf which gives 3 (4,5%-1,5%) = 3%

A: Given that, Market risk premium = 4.5%  Risk free rate = 1.5%  ERi = 6%

Q: f a fund has a return of 12% and a beta of 1.4, and if the risk-free rate is 2%, and market return…

A: Alpha of stock is excess return earned over the return calculated by CAPM.

Q: 3. A fund grows by the force of interest 8 (t) = k max (t, 1 – t) for t≥ 0, and where k > 0. A…

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Q: Fund  Beta    Deviation (%)     Return (%)    Rf (%) XXX  1.07 5.13 19 6 YYY 1.02 4.28 17 6 ZZZ 0.86…

A: The question is based on the concept of Portfolio management

Q: just a,b,c and d please (with working out)

A: (c) Solving for the optimal z's, we get:z11 = 0.4z12 = 0.6z21 = 0.4z22 = 0.6  (d) Solving for the…

Q: Find the numerical value of the factor (P/A,16.3%,15).

A: The present value interest annuity factor (PVIFA) is used to determine the present value of a stream…