What is the composition (weights) of the portfolio? (Round answer to 4 decimal places, e.g. 14.5125%.) Weight in Encor % Weight in Maestro What is the portfolio standard deviation? (Round intermediate calculations to 7 decimal places, e.g. 0.5125129 and the final answer to 4 decimal places, e.g. 14.5125%) Standard deviation % de %
Q: January 1, 2012-Company issues $10,000,000 of no par common shares at $10 each. DR. Cash $10,000,000…
A: Treasury stock is the stock that has been reacquired by the company from the existing stockholders.…
Q: What is the cash flow from financing activities?
A: As per guidelines only one question is solved if in case of multiple questions so kindly rest…
Q: Which of the following transfers is subject to estate tax? a. Transfer passing under general power…
A: Estate Tax- Estate taxes are levied on the transfer of a deceased person's estate to another person…
Q: Donner Company is selling a piece of land adjacent to its business premises. An appraisal reported…
A: Whenever company purchase land,it should be recorded at purchase cost irrespective of its market…
Q: Accounts Balances Equipment $16,000 Accounts payable 1,000 23,000 Salaries expense Common stock Land…
A: The balance sheet is a summary of permanent accounts prepared at the end of the accounting period.…
Q: For each of the following items, write first the journal entry and then, the adjusting entry if any,…
A: Theory introduction: All the business transactions are shown in Journal books. Journals also called…
Q: The VAT amount (charged at 15%) included in R 684, amounts to: OA. R684 OB. R600 OC. R102.60 OD.…
A: Answer:- VAT meaning:- A value-added tax (VAT), is a sort of incremental tax. It is basically…
Q: Brandon Company Bank Reconciliation May 31, 2020 Balance per books May 31 Add: Electronic Fund…
A: Introduction: BRS: BRS stands for Bank Reconciliation statement. To reconcile the difference between…
Q: BC Inc., registered with BIR in X12, has the following data or the year 2018: Gross receipts…
A: Gross income equals revenues/sales minus cost of sales. Cost of sales includes direct material,…
Q: On January 2, 2022 Parent Co, acquired 60% of Subsidiary Inc. for $ 690,000. On that date,…
A: Under the equity method, the net income of a subsidiary company increases the investment portion of…
Q: Bennett Enterprises issues a $852,000, 60-day, 9%, note to Spectrum Industries for merchandise…
A: Formula: Maturity amount of the notes = Face value of the notes + Interest on note where, Interest…
Q: National company acquired a machine on January 01, 2005 at a list price of Rs. 565, 000 with a trade…
A: Routine transactions, such as client charges and supplier invoicing, should not be recorded using…
Q: Complete the following statements with one of the terms listed below. A term may be used once, more…
A: Inventory are those goods that are used by business to trade. It can further be divided into three…
Q: Wha is the general journal
A: General Journal is a financial book in which all the business transactions are recorded in…
Q: The diluted earnings per share calculation includes Select one: O a. any convertible security that…
A: Diluted earnings per share calculate a company's eps if all the convertible securities are…
Q: B. An inexperienced bookkeeper prepared the following which contains several errors: Trial Balance…
A: A trial balance is a statement that contains ledger balances. The sum of debit and credit of the…
Q: 8. When specified receivables are used to secure for a loan on a notification basis, which…
A: The account receivables are the current assets of the company, they represent the sale made by the…
Q: client who is in his 70's. in 2020, he incurred significant capital losses in the amount of $65,000…
A: The capital losses are very common methods of making loss but only $3000 can be adjusted against…
Q: Sammy Joe's cash book (bank columns only) for the month of 2021 June was as follows: $ June 01…
A: The question is based on the concept of Financial Accounting.
Q: What do you think are the requirements for launching a terrific quality team? Identify an issue…
A: Quality Healthcare quality must be improved. It should have organized and consistent activities…
Q: Vertical Analysis Prepabe Chipotle Mexican Grill, Inc. Income Statements For the Years Ended…
A: Vertical analysis of the income statement represents the percentage of a line item with respect to…
Q: The Jonnie Company owns 75% of the Junior Company. On December 31, 2020, the last day of the…
A: As per PFRS 3, Business Combination, the unrealized profit on the upstream transactions should be…
Q: Bright Ltd reported net income of R34 400 in 2011. The financial year end for Bright Ltd is 31…
A: Weighted average outstanding shares = 8,000×612 + 10,000×312 + 12,000×312…
Q: Illustration. The balance sheet of Mateo Roa on Oct. 1, 2021, before accepting Martin Penaco as his…
A: Journal entries refer to recording of a business transaction in a journal during an accounting…
Q: Revenue... Expenses: Vera Bradley, Inc. Income Statements For the Years Ended January 31 (in…
A: An income statement showing the income and expenses of a company. It also displays if a corporation…
Q: Antonio Melton, the chief executive officer of Thornton Corporation, has assembled his top advisers…
A: Net Present Value=(Present Value of Cash Inflows-Present Value of Cash Outflows)
Q: Please provide atleast 500 words As a financial consultant, recommend to your corporate customer of…
A: The planned acceleration or delay of payments due in a foreign currency in order to profit from a…
Q: Helpful pic is a finance company. It purchased computer equipment for R78 500 and leased it to…
A: The balance sheet shows the financial position of the company. It includes the assets, liabilities…
Q: You are examining the financial statements of DON JOHN CORPORATION which ends on December 31. DON…
A: Inventory: The word "inventory" is a term that is used in the field of accounting and refers to all…
Q: Prepare journal entries to record the following production activities. 1. Purchased $30,000 of raw…
A: Prepare Journal Entries to record the following production activities. Transaction General…
Q: What is the expected price of this stock one year from now?
A: Expected price of the stock is the market price of the stock on which the stock will be selling in…
Q: .ABC Corp held the following items on Dec 31, 20X1: Cash on hand, P50,000 Petty cash fund…
A: Cash and cash equivalents mean cash or assets that can be converted into cash immediately. Cash…
Q: Journal d Mar. 28: Billed customers Tk 2,500 for cleaning services. Mar. 31: Paid advertising…
A: Journal entries are the process of initializing the process of accounting in the books of accounts…
Q: A manager must decide which type of machine to buy, A, B, or C. Machine costs (per individual…
A: The question is based on the concept of Cost Accounting.
Q: Total actual direct materials cost $487,000 . Determine the predetermined overhead rate. 2&3. Enter…
A: The overhead is said to underapplied when actual overhead cost is more than the applied overhead…
Q: 4. The inventory at December 31, 2019 is overstated as a result of the inclusion of goods acquired…
A: Errors - Errors affects the income statement and balance sheet as understatement or overstatement of…
Q: 1. PKR 700,000 in raw materials were purchased on account. 2. 600,000 in raw materials were used in…
A: Introduction: Journals: All the business transactions are to be recorded in Journals. Journals are…
Q: January 1, 20x1, ABC Bank extended a P1,000,000 loan to XYZ. Principal is due on December 31, 20x5…
A: Explanation of Concept Current problem is related to the concept of impairment of asset value. Every…
Q: Vertical Analysis Prepate Chipotle Mexican Grill, Inc. Income Statements For the Years Ended…
A: Under Vertical Analysis of Income Statement, Revenues are considered as Base (100%) and all other…
Q: The following data were available for ABC Corp at Dec 31, 20X2: Net purchases P345,000 Inventory,…
A: Formula: Cost of sales during the year = Net sales / (1 + Gross profit %) where, Net sales = Gross…
Q: Wildcat Pizza, Inc. produces batches of frozen pizzas to sell at a variety of grocery stores…
A: Disclaimer: “Since you have posted a question with multiple sub-parts, we will solve the first three…
Q: Consider a 00 par valu vertible semiannually, which will convertible semiannually. Consti
A: Bond refers to the fixed income financial documents which reflect the loan taken by a borrower from…
Q: Effect of the errors in 2020 Effect of the error # 1 for the year 2020 Effect of the error # 2 for…
A: The overstatement of beginning inventory in the income statement leads to lower-income because it…
Q: 5. ABC Corp holds 1,000 shares of XYZ Corp.'s shares since 2010. The following are data available…
A: Based on fair value measurement of financial assets on each reporting date, investments in equity…
Q: Required information [The following information applies to the questions displayed below.] Carmen…
A: Balance Sheet is the summary of All Assets and Liabilities and Shareholder's Equity. Its shows a…
Q: company incurs the following costs at various activities levels: Total costs Activity level $ Units…
A: Variable cost per unit using high low method= = (Highest Activity Cost – Lowest Activity Cost) /…
Q: [The following information applies to the questions displayed below.] The following information is…
A: Raw material inventory is the goods available with the entity in raw form. These are usually used by…
Q: following data were available for Product Z at Mar 31, 20X1: Beg inventory 50 units @ 12…
A: The inventory can be valued using various methods as LIFO, FIFO and weighted average method. Using…
Q: (Treatment of goodwill) A and B are partners sharing profits and losses in the ratio of 3: 2. On…
A: A partnership is a relationship between individuals who are agreed to share the profit of a business…
Q: A trade credit bill of $80,000 with terms of sale of 2/5, net 30 means the buyer saves if the bill…
A: Answer= $1,600 if the bill paid with in discounted period of 5 days he will entitled to 2%…
Step by step
Solved in 3 steps with 2 images
- Calculate the standard deviation of a portfolio with 0.24 invested in Asset A, 0.33 invested in Asset B, and the rest invested in Asset C. Express your answer as a decimal with four digits after the decimal point (e.g., 0.1234, not 12,34%). Std Dev(A) = 0.43, Std Devirg) = 0.67. Std Dev(rc)=0.53 Correlation(A) =-0.24, Correlation(Arc)-0.32, Correlationirere)=0.09 Type your answer.....2. (a) You have a two-asset portfolio that comprises Stock PY and Stock NY with the following information: Proportion of Stock PY in the portfolio Proportion of Stock NY in the portfolio Standard deviation of Stock PY's returns Standard deviation of Stock NY's returns 48% 52% 3% 5% Calculate the standard deviation if the correlation coefficient of returns between both stocks is 0.15.Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .092, E(RB) = 152, OA = .362, and og = .622. Calculate the expected return of a portfolio that is composed of 37 percent A and а-1. 63 percent B when the correlation between the returns on A and B is .52. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the standard deviation of a portfolio that is composed of 37 percent A and 63 percent B when the correlation coefficient between the returns on A and B is .52. а-2. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the standard deviation of a portfolio with the same portfolio weights as in part (a) when the correlation coefficient between the returns on A and B is -.52. (Do b. not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
- Given the returns and probabilities for the three possible states listed below, calculate the covariance between the returns of Stock A and Stock B. For convenience, assume that the expected returns of Stock A and Stock B are 8.10 percent and 11.60 percent, respectively. (Round answer to 4 decimal places, e.g. 0.0768.) Good OK Poor Covariance Probability 0.22 0.60 0.18 Return on Stock A 0.30 0.10 -0.25 Return on Stock B 0.50 0.10 -0.30The following portfolios are being considered for investment. During the period under consideration, RFR = 0.07. Portfolio Return Beta P 0.15 1.00 0.05 Q 0.09 0.50 0.03 R. 0.21 1.30 0.10 0.18 1.20 0.06 Market 0.12 1.00 0.04 a. Compute the Sharpe measure for each portfolio and the market portfolio. Round your answers to three decimal places. Portfolio Sharpe measure P Q R Market b. Compute the Treynor measure for each portfolio and the market portfolio. Round your answers to three decimal places. Portfolio Treynor measure P Q R Market c. Rank the portfolios using each measure, explaining the cause for any differences you find in the rankings. Portfolio Rank (Sharpe measure) Rank (Treynor measure) P |-Select- v |-Select- v Q -Select- v -Select- V R. -Select- V -Select- v -Select- v -Select- v Market -Select- v -Select- v -Select- v is poorly diversified since it has a high ranking based on the -Select- but a much lower ranking with the -Select-Suppose the expected returns and standard deviations of Stocks A and B are E(RA) = .092, E(RB) = 152, đA = .362, and Og = .622. %3D Calculate the expected return of a portfolio that is composed of 37 percent A and 63 percent B when the correlation between the returns on A and B is .52. (Do not a-1. round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the standard deviation of a portfolio that is composed of 37 percent A and 63 percent B when the correlation coefficient between the returns on A and B is .52. а-2. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Calculate the standard deviation of a portfolio with the same portfolio weights as in h part (a) when the correlation coefficient between the returns on A and B is -.52. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) a-1.…
- (4) Please answer the following short questions with what you have learned. There is a portfolio of two assets - 30% investment in Stock A and 70% investment in Stock B. The correlation of returns between Stock A and Stock B is 0.50. The covariance between these two stocks is 0.0043, and the standard deviation of the return of Stock B is 26%. Requirements: (a) Please calculate the standard deviation of the return of Stock A. (b) Please calculate the standard deviation of the return of portfolio. (c) If we increase more and more different stocks in the portfolio, will it always decrease the risk (standard deviation) of the return of the portfolio? Please explain your answer in detail.Standard deviation of the portfolio with stock A is 22.86 %. (Round to two decimal places.) Standard deviation of the portfolio with stock B is 23.47 %. (Round to two decimal places.) Which stock should you add and why? (Select the best choice below.) A. Add A because the portfolio is less risky when A is added. B. Add B because the portfolio is less risky when B is added. OC. Add either one because both portfolios are equally risky.A portfolio is comprised of equal weights of two stocks labeled Stock X and Stock Y. The covariance between Stock X and Stock Y is 0.10. The standard deviation of Stock X is 0.50, and the standard deviation of Stock Y is 0.50. Which of the following comes closest to the correlation coefficient between Stock X and Stock Y? Select one: a. 0.60 b. 0.50 c. 1.00 d. 0.00 e. 0.40
- Asset A has a standard deviation of 0.17, and asset B has a standard deviation of 0.52. Assets A and B have a correlation coefficient of 0.44. What is the standard deviation of a portfolio consisting with a weight of 0.40 in asset A, a weight of 0.24 in asset B, and the remainder invested in a risk-free asset? Give your answer to four decimal places.(b) Assume that the covariance between Stock X and Stock Y is -0.005. Calculate the expected rate of return, variance and standard deviation of Jenny’s portfolio. {Hint: you can express your answers for the variance and standard deviation in decimals or percentage form:• For decimals, the covariance in your equation should be -0.005• For percentage, the covariance in your equation should be -50%2(= -50/10000)]Suppose that there exist two securities (A and B) with annual expected returns equal to ra = 3% and rg = 5% and standard deviations equal to o4 = 7% and oB = 10% respectively. The correlation coefficient between the returns of these securities is p = -0.5. What is the expected return and the standard deviation of an equally weighted portfolio consisting of the securities A and B? Describe every step of your calculations in detail. What is the expected return and the standard deviation of a portfolio consisting of the securities A and B, if the relevant weights are chosen to minimize the risk of the portfolio? Present the minimisation problem and describe every step of your calculations in detail. How could an investor maximize diversification benefits? Critically discuss and explain in detail.