What are RISKS AND CHALLENGES for your proposed investment portfolio (CASH, EQUITY, BOND, REITS, GOLD, OVERALL) in short-term (1- 2 years), and medium term (3- 5) years in Malaysia. For example: RISK AND CHALLENGES IN SHORT-TERM (1-2 years) for: a. Cash b. Equity c. Bond d. Reits e. Gold f. Overall

What are RISKS AND CHALLENGES for your proposed investment portfolio (CASH, EQUITY, BOND, REITS, GOLD, OVERALL) in short-term (1- 2 years), and medium term (3- 5) years in Malaysia. For example: RISK AND CHALLENGES IN SHORT-TERM (1-2 years) for: a. Cash b. Equity c. Bond d. Reits e. Gold f. Overall

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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Consider an investor who wishes to invest 40% to defensive investments and 60% allocation to growth investments. The investor has worked out the forecasted volatility, expected return and correlation between the two types of investments as below: Return Volatility 6% per annum Investments Defensive 5% per annum Growth 18% per annum 11% per annum The correlation between growth and defensive investments is 0.05 Calculate the proportion of risk allocated to Defensive investments in this portfolio. 6.78% 4.56% None of the other answers 5.65% 7.39%
You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows: Years Cash Flow 0 – 100 1-10 + 17 On the basis of the behavior of the firm’s stock, you believe that the beta of the firm is 1.44. Assuming that the rate of return available on risk-free investments is 5% and that the expected rate of return on the market portfolio is 11%, what is the net present value of the project?
Assume you have the following information with respect to the amount of investments you have, assigned to three portfolio managers who work for you: Manger A Manager B Manager C Amount of investment 10,000 15,720 30,500 Day of investment 5 February 18 March 20 April Market value of the investment at the end of the year 12,530 18,912 35,640 Assume the number of days in the year is 360 days whereas each month is 30 days You need to answer the following: The compound rate of return for each manager Your portfolio rate of return at the end of the year If you withdrew 4,500 at May 15th and 2,300 at Sept. 10th from your portfolio, what would be your portfolio rate of return at the end of the year?
Suppose the return of asset A to D, is given as follows: Asset 2018 2019 2020 2021 A 9% 10% -2 % 15% B 7% 10% 5 % 9% C -11% 20% 12% 8% D 10% 16% -5 % -8% Calculate the expected return of: a. One stock at a time b. Portfolio of A, B & D, and, B, D, & A c. Portfolio of A & B, and, D & B d. Portfolio of all the four stocks
You are a consultant to a firm evaluating an expansion of its current business. The cash-flow forecasts (in millions of dollars) for the project are as follows: Years 1-10 Cash Flow -100 +18 On the basis of the behavior of the firm's stock, you believe that the beta of the firm is 1.38. Assuming that the rate of return available on risk-free investments is 7% and that the expected rate of return on the market portfolio is 15%, what is the net present value of the project? Note: Negative amount should be indicated by a minus sign. Do not round intermediate calculations. Enter your answer in millions of dollars rounded to 2 decimal places. Net present value S 17.14 million
Subject name: Principles of Insurance and Risk Management, Answer it fast please.
Alternative 1 2 WN 3 Investment 100% of asset F 50% of asset F and 50% of asset G 50% of asset F and 50% of asset H Year 2019 2020 2021 2022 Asset F 10% 11% 12% 13% Historical Return Asset G 11% 10% 9% 8% Asset H 8% 9% 10% 11%
The investment funds for your company includes the following: Stock $ Amount Invested Beta for Each Stock A $ 600,000 .8 B $ 1,800,000 1.4 C $ 2,400,000 1.7 D $ 700,000 -.6 E $ 3,000,000 1.1 You need to calculate the required rate of return for the investment. The market’s required return for Year 2020 is 12% and the risk free rate is 3% Show your work on the following: Calculate the average beta for the portfolio. Calculate the required rate of return for the entire portfolio. The CFO of your company is anticipating that the stock market will be decreasing in the near future. Please give a recommendation on which stock the company should sell and which stock the company should buy. The CFO also wants you to explain your answer.
Solve for CDL’s current cost of equity and weighted average cost of capital. Show all relevant workings.
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 14 8. A. Calculate the expected returns for the suggested portfolios as below, Portfolio Euro Foods Sohar Foods 1. 25% 1 75% 75% 25% 3. 50% 50% B. Calculate the coefficient of variation of shares on Euro Foods and Sohar Foods. C. 89 F C H/2
Assume you have the following asset and liability in your Balance Sheet:Asset - Bond AModified Duration = 2.6 yearsValue= RM1.5 millionLiability - Bond BModified Duration = 3.1 yearsValue= RM1.0 million duration gap is 0.53 years, net worth reduce by 8000. What should or could you to achieve immunized balance sheet?
In the Fama-French 3-factor model, suppose the factor risk premiums (in % year) are as follows: Factor Risk Premium Factor Market Risk- free rate Beta for the Portfolio 5.0% Market Risk- free rate SMB The estimated factor betas for a portfolio of large agriculture companies are: 1.1 3.0% SMB HML -0.7 7.0% HML 0.9 According to this 3-factor model, what is the expected excess return for this portfolio of agriculture companies? When performing the calculations, do not round any inputs or interim results until you get the final answer. Round your final answer to four places after the decimal point.

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