Please show the steps on how to solve in excel and please show the formulas Investments in storage facilities in San Diego, CA has a 62% return correlation with investments in multi-family properties in Atlanta. using the information provided below please solve a and b.  Expected return - San Diego Storage            8.0%Expected return - Multi-Family Atlanta            7.0%SD of expected return - San Diego Storage            12.5%SD of expected return - Multi-Family Atlanta            15.0% a. What is the expected return on a portfolio that invests 40% in San Diego storage facilities and 60% in Atlanta multi-family properties? b. What can be said about the annual standard deviation of return of a portfolio that invests 40% in San Diego storage facilities and 60% in Atlanta multi-family properties? (note: the answer should only indicate a value that is smaller or larger than a specific percentage)

An investor has $24,000 to invest in bonds of AAA and B qualities.  The AAA bonds yield an average of 6% and the B bonds yield 10%.  The investor requires that at least three times as much money should be invested in AAA bonds as in B bonds. How much should be invested in each type of bond to maximize the return? What is the maximum return? Define the variables needed to solve this problem. Organize your given information. (This part NOT graded, but encouraged.) Write the complete linear programming problem, which includes the objective function and all constraints. Graph and make sure all lines are labeled and shaded/solution region is clear and easy to identify. Create a corner point chart.  Remember to mark your solution. Answer in a complete sentence or two:  How much should be invested in each type of bond to maximize the return? What is the maximum return?

Firm 1 has £10,000 to invest. Firm 2 offers Firm 1 the following proposal: invest £10,000now and get £11,000 back in 12 months. The returns on this investment are guaranteed, and there are no other costs involved? What should Firm 1 do? b. Firm 1 is considering investing their profit into any of the following two projects. Investment appraisal techniques have been used, and the following results found:   Project A Project B Internal Rate of Return 6% 8% Net present value 88000 61000  which project should Firm 1 select?

The following graph has plots of the net PW of an investment as functions of %-ge changes in the values of the input variables V1, V2, V3, V4 and V5. V1 V2 V3 50% NGƯỜ V5 -30% -20% $200,000 $150,000 $100,000 $50,000 -10% -$50,000 - -$100,000 -$150,000 0% Present Worth B. Decrease of $25,000 C. Increase of 22% D. No change can affect economic feasibility E. Decrease of 22% 10% To which two variables is the present worth most sensitive to? A. V1 and V2 B. V3 and V4 C. V4 and V5 D. V1 and V5 OE. V2 and V3 % change 20% 30% 40% 50% What is the maximum allowable change in V2 before the investment becomes un-economical? OA. Increase of $25,000

Elinore is asked to invest $4,900 in a friend's business with the promise that the friend will repay $5,390 in one year's time. Elinore finds her best alternative to this investment, with similar risk, is one that will pay her $5,341 in one year's time. U.S. securities of similar term offer a rate of return of 6%. What is the opportunity cost of capital in this case? ... O A. 10% О в. 11% O C. 9% O D. 6%

You are presented 2 investment options. Which one gives you a better return? In option A, you pay $3,000 today and receive $750 at the end of the year for the next 5 years. In option b, you pay $2,000 today and receive $3,000 at the end of five years

The demand D (in billions of £) for a bond with coupon rate 5% and face value FV = 1000, andtwo years to maturity as a function of its price P is D = 4000 − 2P. The supply in (billions of£) as a function of the price of the bond is S = 2P + 400.     b) Suppose that the yield to maturity of the bond is i = 0.05. What is the quantitydemanded/supplied at this interest rate? What happens to the demand/supply of the bond asthe interest rate increases? Explain why. c) What is the equilibrium interest rate? d) Suppose that the bond trades at premium. Is there excess demand or supply? Explain.e) There is a business cycle expansion, so both supply and demand shifts. After the shift, thenew demand curve is given by: D = 4000 + X − 2P, whereas the new supply curve is S =2P + 200. For which values of X will the interest increase/decrease? Which values of X arein line with empirical data?

The demand D (in billions of £) for a bond with coupon rate 5% and face value FV = 1000, andtwo years to maturity as a function of its price P is D = 4000 − 2P. The supply in (billions of£) as a function of the price of the bond is S = 2P + 400.     b) Suppose that the yield to maturity of the bond is i = 0.05. What is the quantitydemanded/supplied at this interest rate? What happens to the demand/supply of the bond asthe interest rate increases? Explain why. c) What is the equilibrium interest rate?

34. Skyscrapers Corporation is engaged in the manufacturing of standard wide flange section of steel whose selling price is P690. For the average monthly production of wide flange, the cost of production y is approximately related to the number of units produced x by the following equation. y = 0.5x? + 400x + 24,000. What is investment rate corresponding to a volume of production to earn the maximum rate of return of capital

Matollows and 250 shillings in the following year. After that, dividends are expected to grow at constant 5% per year. If the required rate of return is 10%, what price should investors pay for such shares today? 4. Suppose a firm is considering a project that would require an initial cash outlay of 15 million shillings and expected to generate shs 4.5 million each year for the next 4 years. The firm assumes that the prices and costs increases at the same rate and that the required rate of return expressed in nominal terms is 14%. The firm also practices a policy whereby cash flows are stated at the prices of period zero. The inflation rate is expected to be 5%. (a)Outline two ways in which the effects that inflation has on the acceptability of investment projects could be considered. (b)Using the NPV technique, is the project worth taking? What have you learned from your analysis as far as treating inflation in investment analysis is concerned? 30/2021 4:39:41 PM Page 1 of 2