Stryker Corporation

There are several ways that you can form your portfolio, combine Vanguard and Hasbro; combine Vanguard and Reynolds; combine Vanguard, Hasbro and Reynolds. If you chose to combine Vanguard and Hasbro together, and you are going to keep the standard deviation as 6 (the average standard deviation of these three asset), you can invest 47% in Vanguard and 53% in Hasbro with an expected return of 0.89. If you chose to combine Vanguard and Reynolds and keep the standard deviation as 6, you can invest 58% in Vanguard and 42% in Reynolds with an expected return of 1.11. And if you chose to invest certain amount in Vanguard, Hasbro and Reynolds, again try to keep the standard deviation as 6, you can invest 30% in Vanguard, 62% in Reynolds and 0.08% in Hasbro.

e. Assume now that you earn 8.8% per year on your total contribution (from part 2.b.), how much will that one year of savings grow into in 40 years?

portfolio, Sharpe also wanted to fully compare the risk profiles of the two companies to that of the

If a portfolio’s expected rate of return and standard deviation contained 75 percent of Project B, then the expected rate of return will be 25% of Project A. In economic states when A’s returns are relatively low, those of B are relatively high, and vice versa, so the gains on one investment in the portfolio more than offset losses on the other. The movement relationship of two

Stryker Corporation is a medical technology company that supplies healthcare facilities across the globe. Founded in 1941 by an orthopedic surgeon Dr. Homer H. Stryker, this company has had abounding success over the decades. Stryker produces a wide array of medical products such as joint replacement and trauma surgery implants, surgical navigation and equipment systems, and endoscopic and communication systems. The company’s products are sold in over 100 countries world-wide and are marketed directly to doctors, hospitals, and other healthcare facilities (Jellison, 2014). The company prides itself on its four values: integrity, accountability, people, and performance (stryker.com, 2014). Together, these values have helped Stryker set

Finance 316 practice problems for final exam 15. You are trying to decide how to invest your retirement savings. Over the past three years, stock #1 experienced annual returns of -1%, +7%, and +3%, and stock #2 experienced annual returns of +2%, -4%, and +8%. You may assume that the correlation between the returns of stock #1 and stock #2 is 0.25. Use this information in your answers to

Throughout the semester we really had to watch the markets in order to obtain a successful portfolio. The way we approached this task was through constant watching of the securities market to find out current trends as well as picking up stocks we thought were undervalued at that time. The latter, of course, applies to our managed portfolio, where we were able to select stocks we deemed were good investments. We observed that this specific portfolio gave us more stable returns, which we attributed to the lower betas of these stocks. One can also conclude that the worst performers of the same portfolio were due the same cause. Based on the returns of our managed portfolio, one can conclude that we chose to

#1. Allocation of funds according to the type of investment we plan which will total to $25K

(10) You have an equally weighted portfolio that consists of equity ownership in three firms. Firm A is trading at $23 per share and has a beta of 1.15; Firm B is trading at $16 per share with a beta of 1.60; Firm C is trading at $76 per share with a beta of 0.85. Assume a risk free rate of 2% and market return of 7%. If each stock has a standard deviation of 40% and the stocks have a correlation of 0.20 with each other, your portfolio's expected return is closest to

You expect a 4% to 8% average annual return for your portfolio in the long term (+10 years) before tax and after inflation.

The optimal weights of X and Y in O are 60% and 40% respectively. X has an expected rate of return of 14% and Y has an expected rate of return of 10%. To form an efficient portfolio with an expected rate of return of 8%, you should invest approximately __________ and __________ of your $1,000 in security X and Y respectively. A. $348, $232 B. $312, $208 C. $279, $186 D. $243, $162 D Expected return on Portfolio O = 12.4% Denoting the weight on Portfolio O, w: 12.4w + 5×(1-w) =8 w = 3/7.4 = 0.4054 Dollar investment in X = 1000 ×0.6×0.4504 = $243 Dollar investment in Y = 1000 ×0.4×0.4504 = $162

The drop in Treasury values would be about 4.4 percent. This would decrease the size of the federal

5) Now we constraint the entire asset classes by their lower and higher permitted values (according to Exhibit 13). We created 9 portfolios, as can be seen in Graph 1.

As for the portfolio, the expected return for a portfolio is the weighted average of the expected rates of return for the individual investments in the portfolio. The variance of the portfolio returns is a weighted sum of the covariance and variance terms associated with the assets in the portfolio. 41 possible portfolios contains DJS and BHP with different weights starting at 100% invested in BHP and increasing the weight at 2.5% intervals until it reaches 100% in DJS.

Subtract the risk-free rate from the market (or index) rate of return. If the market or index rate of return is 8 percent and the risk-free rate is again 2 percent, the difference would be 6 percent.