Ahmad has 3000 JD,he is going to invest 1800 JD In X inuegtment wiltlh 16% expected rehu and 21% standand devntion, and uhe remaining in an inuestumeat wich 9% return.
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- For investment A, the probability of the return being 20.0% is 0.5, 10.0% is 0.4, and -10.0% is 0.1 Compute the standard deviation for the investment with the given information. (Round your answer to one decimal place.) a. 85.00% b. 15.00% c. 34.00% d. 17.00% e. 9.00%An investor invests 70% of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04. He also places 30% of his wealth in a T-bill that pays 5%. His portfolio's expected return and standard deviation are __________ and __________, respectively. Group of answer choices 0.120; 0.14 0.087; 0.06 0.295; 0.12 0.087; 0.12 0.895; 0.11Assume that the CAPM is true, Rf = 5%, Rm= 15% σm = 0.1. An investor with $10,000 to invest builds a portfolio, Q, of T-bills and the market portfolio. This means that: a) it would be possible for the investor to obtain a return of 17% on portfolio Q b) if portfolio Q were composed of short-selling $2,000 in T-bills and the remainder is the market portfolio, then Pqm = 1, βq = 1.2 and σq = 0.12 c) to obtain a return of 17% from portfolio Q the investor would need to invest $12,000 in the market portfolio d) all of the above are true e) only a) and b) above are true. Pls show procedure, thanks
- Approximately, what is the value of the total Present worth (where Ptotal= PA + PG) if G (arithmetic gradient) =160, n=2 years, A=240 and i= 2.5% per year? Select one: a. 738 b. 511 c. 615 d. 825 not use excelY2 You bought 100 strike $30 American put options for $0.08 each exactly 270 days ago. Today you exercised the options while the underlying asset was trading for $29.82/share. What is your net annualized ROI on this investment? Please submit your answer so that 5 is used to represent 5% net returnsDetermine EVA when net operating porofit is $1128000 initial cost of investment is $55 lakh & cost of capital of the company is 12% which option is correct 408000 468000 368000 378000
- MCQ'S 11) A project has an expected net present value of $50,000 with a standard deviation of the net present value of $20,000. Assume that NPV is normally distributed. What is the probability that the project will have a negative NPV? a.34.5% b.0.62% c.49.38% d.99.38% 12) The Percolator Company has the following capital structure: Common stock ($5 par, 250,000 shares) $1,250,000 Contributed capital in excess of par $5,000,000 Retained earnings $4,000,000 The company declares a 10% stock dividend. The pre-stock dividend market price of the company's stock is $50. Determine the balance in the retained earnings account after the stock dividend. a.$1,375,000 b.$1,250,000 c.$4,000,000 d.$2,750,000 13) All of the following are methods of adjusting a project for total risk EXCEPT ___. a.the certainty equivalent approach…4. We only have OMR 800,000 to invest. Which do we select based on Weighted average profitability index method ? Project NPV Investment PI A 430,000 500,000 B 241,250 225,000 C 394,250 375,000 D 262,000 575,000An investor invests 30% of his wealth in a risky asset with an expected rate of return of 0.15 and a variance of 0.04 and 70% in a T-bill that pays 6%. His portfolio's expected return and standard deviation are __________ and __________, respectively. A. 0.087; 0.06 B. 0.295; 0.06 C. None of the options are correct. D. 0.087; 0.12 E. 0.114; 0.12
- 3.4 Amber was evaluating the feasibility of a project that has an initial investment of $205,000 and subsequent investments of $155,000 in the 1st and 2nd years. From the 3rd year onwards, it will generate cost savings of $200,000 every year for 8 years. a. If the project has a terminal value of $100,000, what is the Internal Rate of Return (IRR)? b. Should the project be accepted if the company's cost of capital is 23.00%? Yes/No Kindly use all the decimals. DO NOT ROUNDAliska plc is investing £990,000 in a project. If it is a success then the return will be £230,000. However, if a particular risk occurs the return will reduce to £10,000. The probability of this risk occurring is 02 What is the project's expected return on the investment for risk evaluation purposes? A. 4.85% B. 5.45% C. 18.79% D. 19.39%daha Itd has a short term investment worth $100 000 which is traded on the stock exchange. the investment will be sold in 90 days, the daily standard deviation of movements in the value of the investmentis $1000. based on general market conditions the most likely outcome is that the investment can be sold for $96 500. with 90% confidence what is the lowest value that daha Itd will be able to sell the investment?