Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
14th Edition
ISBN: 9780133507690
Author: Lawrence J. Gitman, Chad J. Zutter
Publisher: PEARSON
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Question
Chapter 8, Problem 8.27P
a)
Summary Introduction
To discuss:
Calculation of portfolio beta.
Introduction:
Beta is an indicator of the risk tha measures the systematic risk of a risky investment by comparing the risky investment with the average risky asset in the market.
b)
Summary Introduction
To discuss:
Percentage of return of each asset of the portfolio.
Introduction:
Return: In financial context, return is seen as percentage that represents the profit in an investment.
c)
Summary Introduction
To discuss:
Percentage of return of portfolio.
Introduction:
Return: In financial context, return is seen as percentage that represents the profit in an investment.
d)
Summary Introduction
To discuss:
Expected
Introduction:
e)
Summary Introduction
To discuss:
Comparing performance.
Introduction:
Beta is an indicator of the risk tha measures the systematic risk of a risky investment by comparing the risky investment with the average risky asset in the market.
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H1.
Account
The four people below have the following investments.
Invested
Amount
$ 11, 200
14, 200
21, 200
17,200
Jerry
Elaine
George
Kramer
Reg 1A
Required:
1-a. Calculate the future value at the end of three years. (FV of $1, PV of $1, FVA of $1, and PVA of $1)
1-b. Who has the greatest investment accumulation?
Jerry
Elaine
Interest
Rate
Complete this question by entering your answers in the tabs below.
Req 1B
George
Kramer
12%
8
7
9
Compounding
Quarterly
Semiannually
Future Value
Annually
Annually
Calculate the future value at the end of three years.
Note: Use Excel or a financial calculator Round your answers to 2 decimal places.
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?
Chapter 8 Solutions
Principles of Managerial Finance (14th Edition) (Pearson Series in Finance)
Ch. 8.1 - Prob. 1FOECh. 8.1 - What is risk in the context of financial decision...Ch. 8.1 - Prob. 8.2RQCh. 8.1 - Prob. 8.3RQCh. 8.2 - Explain how the range is used in scenario...Ch. 8.2 - Prob. 8.5RQCh. 8.2 - Prob. 8.6RQCh. 8.2 - What does the coefficient of variation reveal...Ch. 8.3 - What is an efficient portfolio? How can the return...Ch. 8.3 - Prob. 8.9RQ
Ch. 8.3 - How does international diversification enhance...Ch. 8.4 - Prob. 8.11RQCh. 8.4 - Prob. 8.12RQCh. 8.4 - Prob. 8.13RQCh. 8.4 - What impact would the following changes have on...Ch. 8 - Prob. 1ORCh. 8 - Prob. 8.1STPCh. 8 - Prob. 8.2STPCh. 8 - Prob. 8.1WUECh. 8 - Prob. 8.2WUECh. 8 - Prob. 8.3WUECh. 8 - Prob. 8.4WUECh. 8 - Prob. 8.5WUECh. 8 - Prob. 8.6WUECh. 8 - Prob. 8.1PCh. 8 - Prob. 8.2PCh. 8 - Prob. 8.3PCh. 8 - Prob. 8.4PCh. 8 - Prob. 8.5PCh. 8 - Learning Goal 2 P8-6 Bar charts and risk Swans...Ch. 8 - Prob. 8.7PCh. 8 - Prob. 8.8PCh. 8 - Prob. 8.9PCh. 8 - Prob. 8.10PCh. 8 - Prob. 8.11PCh. 8 - Prob. 8.12PCh. 8 - Prob. 8.13PCh. 8 - Prob. 8.14PCh. 8 - Learning Goal 4 P8- 15 Correlation, risk, and...Ch. 8 - Prob. 8.16PCh. 8 - Learning Goal 5 P8- 17 Total, nondiversifiable,...Ch. 8 - Prob. 8.18PCh. 8 - Prob. 8.19PCh. 8 - Prob. 8.20PCh. 8 - Prob. 8.21PCh. 8 - Prob. 8.22PCh. 8 - Prob. 8.23PCh. 8 - Prob. 8.24PCh. 8 - Prob. 8.25PCh. 8 - Prob. 8.26PCh. 8 - Prob. 8.27PCh. 8 - Learning Goal 6 P8- 28 Security market line (SML)...Ch. 8 - Prob. 8.29PCh. 8 - Prob. 8.30PCh. 8 - Prob. 8.31PCh. 8 - Prob. 1SE
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