You just finished the first quarter managing a portfolio for a client. The initial investment was $300,000 and at the end of the quarter the value was $316,250. Your performance is judged against a combination of U.S. and Non-U.S. equity indices. The U.S. index is the S&P 500 and has a weight of 70%. The Non-U.S. index is the MSCI EAFE and has a weight of 30%. For the quarter, the S&P 500 Index rose from 1105.22 to 1170.76, and the MSCI EAFE went from 879.32 to 921.44. What is the alpha of your portfolio? (recurring content question) O Your alpha is -17 basis points O Your alpha is 0.006% O Your alpha is 17 basis points O Your alpha is 5.42 basis points O Your alpha is 6 basis points
Cost of Debt, Cost of Preferred Stock
This article deals with the estimation of the value of capital and its components. we'll find out how to estimate the value of debt, the value of preferred shares , and therefore the cost of common shares . we will also determine the way to compute the load of every cost of the capital component then they're going to estimate the general cost of capital. The cost of capital refers to the return rate that an organization gives to its investors. If an organization doesn’t provide enough return, economic process will decrease the costs of their stock and bonds to revive the balance. A firm’s long-run and short-run financial decisions are linked to every other by the assistance of the firm’s cost of capital.
Cost of Common Stock
Common stock is a type of security/instrument issued to Equity shareholders of the Company. These are commonly known as equity shares in India. It is also called ‘Common equity
Step by step
Solved in 3 steps with 1 images
