A risky portfolio is provided with an expected rate of return of 19.5%, standard deviation of 30% and risk free rate of 8.5%. If the client chooses to invest three different risky assets a proportion of equal investments and also in T bills. a) Determine weights of all the distributed assets. b) Determine the Sharpe ratio of the portfolio c) If the investment is done such a way that the expected return is maximized with standard deviation not exceeding 25%. Determine the investment proportion and expected return of the portfolio.

Q: What's the value to you of a $1,000 face-value bond with an 8% semi-annual coupon rate and 7 years…

A: Face value of the bond = $1,000 Semiannual coupon amount (C) = $40 (i.e. $1000 * 0.08 / 2)…

Q: The two main approaches to equity analysis are the relative valuation models and… a. The discounted…

A: Stock valuation is very useful to ascertain whether the stock is trading at premium or discount.…

Q: The ABC Corporation is considering purchasing a machine to manufacture mobile phones. The purchase…

A: The operating income is calculated after tax for the purpose of calculating the present value of a…

Q: Find the future value of the following annuity due. Payments of $900 for 2 years at 4% compounded…

A: Annuity Due Periodic Payment = 900 N = 2 Nominal Rate of return = 4% Compounding periods = 2

Q: Pro-Forma Income Statement Sales Cost of goods sold Gross profit Operating expenses Net operating…

A: calculation of cost of goods sold = 62% of 14800000 = $ 9176000 calculation of sales and operating…

Q: Q1- What is a probability impact matrix? Q2- how to make a risk assessment matrix? Q3- how to use…

A: Probability impact matrix is one of most common tools in risk assessment.  It is commonly used when…

Q: Karl Yates needs $6,000 to pay for the remodeling work on his house. A contractor agrees to do the…

A: Present Value refers to the discounted value of a single cash flow or multiple cash flows today…

Q: What is the break-even stock price for the protective put?

A: A protective put is when an investor has bought (long) the underlying asset and at the same time…

Q: What does Beta measure and how is it interpreted? Explain the beta values of TSLA and JPM by…

A: In the financial market, the risk is categorized into two parts one is systematic and the second is…

Q: onsider the case of two financial assets and three market conditions (states). The table below gives…

A: Expected rate of the portfolio depends on the weight of stocks in portfolio and return on stocks of…

Q: A share of Tension-free Economy Ltd. is currently quoted at, a price earning ratio of 2-5 times. The…

A: Final answers Part 1) 21.33% Part 2) 67.83 Part 3) 191.67

Q: Isabel, a calendar-year taxpayer, uses the cash method of accounting for her sole proprietorship. In…

A: Given: Particulars Amount Service amount $35,000 Marginal tax rate 37% After tax rate of…

Q: Are you agree with the phrase (sentence): "In the following case, person who prefer project A to…

A: Two projects have been given. We have information about their risk reward profile. We have to find…

Q: It is the beginning of September and you have been offered the following deal to go heli-skiing. If…

A: Decision tree Analysis A  mathematical tool that helps the investors to make decisions by comparing…

Q: Mala Inse Co. is evaluating the purchase of a P500,000 machine. The cash inflow from the investment…

A: The internal rate of return is rate of return at which present value of cash flow is equal to the…

Q: A shareholder in a company:

A: Shareholders A person or entity who holds the shares or stocks of a company is known as shareholders…

Q: Caleb Clark Ventures invests $2 million in convertible preferred stock in a company with an $8…

A: The preferred stock is a hybrid of equity and debt instrument that provides the holder with…

Q: McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $1,921,000; 40% of…

A: McEwan Industries sells on terms of 3/10, net 30. Total sales for the year are $1,921,000; 40% of…

Q: What's the value to you of a $1,000 face-value bond with an 7% semi-annual coupon rate  and 9 years…

A: Face value or maturity value (M) = $1,000 Semiannual coupon amount (C) = $35 ($1000 * 0.07 / 2)…

Q: Calculate the net price of a case of paper if there are 20 reams per case and each ream co $1.14.…

A: Th companies provide the discounts to the customers to attract them for more and more purchases but…

Q: Firm Z has invested $4 million in marketing campaign to assess the demand for the product Minish.…

A: NPV  is defined as the sum of the present values of all future cash inflows  less the sum of the…

Q: Financial assets in the economy include all but which one of the following?

A: A financial asset is a liquid asset whose value is derived on a legal claim or ownership interest.…

Q: 5. Evaluate the net present values of the following streams of income: V = $100 per year in…

A: An annuity is a contract where the holder gets a fixed periodic payment for a predetermined period…

Q: Problem 4. Refer to problem no. 3. Using NPV and IRR method, give your recommendation if the company…

A: This answer is for only Problem no. 4 Here total cost of new equipment would be =417,860+40000…

Q:

A: As per the given information: Amount of loan - $164,000 Rate of interest - 8% Period - 11 years To…

Q: Bond has a face value of ₡3000 and pays coupon of 12% per annum for 4 years, if the  market interest…

A: Hi, since you have posted multiple questions, we will answer the first one, as per authoring…

Q: 5. Under compund interest rate model, suppose effective discount rate is 5% (a) Calculate equivalent…

A: Because you have asked question with multiple parts (MULTI PART) , we will solve the first 3 parts…

Q: Determine the Cost of Capital (k)

A: Information Provided: Coupon rate = 7% semi-annually Par value = 1000 Bond price = 932.04836 Bond…

Q: You hold a European put option on Italian Firm Spaghetti SPA. with a strike price of €100. Things…

A: Stock Price €                                                                          2.00…

Q: Petfeed plc has outstanding, a high yield Bond with following features: Face Value £ 10,000 10%…

A: Final answers Part 1)10293 Part 2)1742

Q: [Determination of Selling Price] Question 18: The following data are obtained from the records of a…

A: I solved four parts in step 2 As per bartleby guidelines we are allowed 3 parts only I answered…

Q: An offering of a new issue of shares to existing shareholders who may purchase new shares in…

A: The company needs funds or capital to operate the business. The company can raise funds either by…

Q: Describe the important properties of fixed assets?

A: Since you have posted a question with multiple questions, we will solve the first question for you.…

Q: 3. Please, explain (with an example for each) ... a real world situation, where Future Value and…

A: Present value : It is the current value of future  cash flows i.e., how much the future sum of money…

Q: berto opened a savings account for his daughter and Dosited $800 on the day she was born. Each year…

A: The future value of the annuity includes the amount being deposited and amount of compounded…

Q: Capital structure of Sun Ltd., as at 31.03.2003 was under: Particulars Equity share capital 8%…

A:

Q: Red, Inc., Yellow Corp., and Blue Company each will pay a dividend of $4.15 next year. The growth…

A: The dividend discount model states that the dividends that are paid by a company are good indicators…

Q: Which of the following are examples of Asset Allocation? i. I allocate 20% of my wealth to stocks…

A: Investors depending on the objectives to be achieved in the future put money in different kinds of…

Q: Mala Prohibita Inc. is evaluating a proposal to acquire a new equipment. The equipment would require…

A: The cost of capital is the return that the company provides to the investors for their investments.…

Q: 8. If a lawyer tells you that his client is planning to construct a building on leased premises, the…

A: Lease is a form of contract or arrangement between two parties under which one party provides it's…

Q: The future value of $900 saved each year for 10 years at 8 percent. (Round your discount factor to 3…

A: C = Annual cash flow i.e. $900 r = Interest rate i.e. 0.08 or 8% n = Period i.e. 10 years FV =…

Q: is a money market instrument.

A: Money Market Instrument: These instruments have a period of maturity of up to one year. The primary…

Q: 1. What is the future worth of a series of equal yearly deposits of Php 100,000 for 8 years in a…

A:

Q: Hayden Inc. has a number of copiers that were bought four years ago for $25,000. Currently…

A: After tax salvage value After tax salvage value is calculated as shown below.         After tax…

Q: Could I get the entire answer please? Earnings before taxes, net income and taxes?

A: Information Provided: Sales = $14,800,000 Interest expense = $307,000 COGS (Cost of Goods Sold) =…

Q: Consider the following information:     Cash Flows ($) Project C0 C1 C2 C3 C4 A –5,300 1,300 1,300…

A: Since you have posted a question with multiple sub-parts, we will solve the first three sub-parts…

Q: Mala Prohibita Inc. is evaluating a proposal to acquire a new equipment. The equipment would require…

A: Given, The initial investment is P417,860 Cashflows is P68,000. Income tax is 32%

Q: Find the present value of the given future amount. $70,093 for 324 days at 6.4% simple interest.…

A: Intreast rate for 324 Days =6.4×324÷360=5.76% Future value =70,093

Q: Biden recieves $2,100 income tax rebate. He can: - invest it at 9% and compounded quarterly for…

A: Here, To Find: Future value of both the options =? Decision to select =?

Q: Are annuities good investments? To answer this question, consider the situation of John. He is 50…

A: IRR (Internal Rate of Return) is the formula used by the investor for evaluating the percentage of…

Portfolio Management

Portfolio management is the process by which an investor decides that how the person will invest in a variety of assets in order to get a desired return in the future. A portfolio means a pool of assets that includes securities, bonds, and other investment instruments which helps in risk minimization of the money that has been invested. In other words, it can be said that a portfolio means a combination of assets in which an investor decides to invest their money in order to get a lump sum return in the future or even a series of cash flow that the person is expecting at the end of their job life.