J1002019/10/31 Accentuate10,15%420R 8,25 R 3 472 26088%1,00000R3 055 0,06%880743589 453090J1002019/11/28 Accentuate8,89%420 R 12,00 R 3 787 92088%1,00000R3 333 0,07%880810370 313090J100 2019/12/31 Accentuate10,99%420 R 12,70 R 3 661 656 88%1,00000R3 222 0,07%880783257 969090The Accentuate Group is a JSE listed company in South Africa. Accentuate operates within the chemical industries in SouthAfrica.JSE 100 is an index on the Johannesburg Stock Exchange, Accentuate is a constituent of JSE100 its weight in the index isgiven in table 1 above.Consider an investor with a portfolio consisting only of Accentuate shares.The Treasury bill rate in 2014 was 3.06% in SouthAfrica. Using dividend yield as (returns). Calculate Accentuate Sharpe ratio.QUESTION TWOCalculate the capital gains for an investor who bought Accentuate Shares on 31 January 2014 and held the shares until 31December 2014QUESTION THREEConsider an investor with a portfolio consisting only of Accentuate shares. Calculate the Treynor ratio given that the beta ofAccentuate is 0.8 QUESTION ONETable 1Closing GrossMCAPIndex StatisticDividend FTSEFree PortfolioInstrumentNet MCAP WeightCode DateYieldSIPriceFloat FactorJ100 2019/01/31 Accentuate8,08%420R7,95 R 3 345 996 88% 1,00000R2 944 0,07%880716477 110090J100 2019/02/28 Accentuate7,22%420R7,61 R 3 202 897 88% 1,00000R2 818 0,06%880485549 787090J1002019/03/31 Accentuate6,22%420R7,60 R 3 198 68888%1,00000R2 814 0,06%880684846 042090J100 2019/04/30 Accentuate9,95%420R8,63 R3 632 195 88%1,00000R 3 196 0,07%880177331 755090J1002019/05/30 Accentuate8,85%420R 8,95 R3 766 876 88%1,00000R3 314 0,07%880806851 589090J100 2019/06/30 Accentuate9,98%420R 8,55 R 3 598 524 88%1,00000R 3 166 0,06%880770701 797090J100 2019/07/31 Accentuate9,31%420R7,70 R 3 240 902 88%1,00000R2 8510,06%880957994 602090J100 2019/08/29 Accentuate3,18%420R8,01 R3 371 24988%1,00000R2 966 0,06%880521699 578090J100 2019/09/30 Accentuate5,14%420R 8,27 R 3 480 678 88%1,00000R3 0620,06%880344996 943090

Risk free rate is 3.06% Accenture's beta is 0.8 To Find:- Sharpe ratio (Using dividend Yield as…

Answered: The Accentuate Group is a JSE listed…

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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D4) Finance Consider a portfolio composed of shares AAA and BBB as shown in the following table. At 95% confidence level, select the correct statement AAA BBB Value 2,470,000 785,750 % investment 76% 24% Volatilities 2.32 % 2.69 % Correlation for both assets 0.65 Portfolio Value for both assets 3,255,750 a) The Component VaR of the Asset AAA is 92,223 and the component VaR of the Asset BBB is 27955.69 b) The contribution to the VaR of the Asset AAA is 77% and the one of the Asset 2 is 23% c) Both answers are correct
State ofEconomy Probabilityof State Return on AssetDin State Return on AssetEin State Return on AssetFin State Boom 0.35 0.060 0.310 0.25 Normal 0.50 0.060 0.180 0.20 Recession 0.15 0.060 -0.210 0.10 1.As an investor, compare Stock E with Stock F, and identify which stock willyou select and why.
QUESTION 3 – Risk and ReturnSintok Corporation has collected information on the following three investments. Which investment is the most favourable based on the information presented?Stock A Stock B Stock CProbability Return Probability Return Probability Return0.15 2% 0.25 -3% 0.1 -5%0.4 7% 0.5 20% 0.4 10%0.3 10% 0.25 25% 0.3 15%0.15 15% 0.2 30%
Question content area top Part 1 (Capital asset pricing model) Anita, Inc. is considering the following investments. The current rate on Treasury bills is 7 percent, and the expected return for the market is 12.5 percent. Using the CAPM, what rates of return should Anita require for each individual security? Stock Beta H 0.71 T 1.62 P 0.89 W 1.37 (Click on the icon in order to copy its contents into a spreadsheet.) Question content area bottom Part 1 a. The expected rate of return for security H, which has a beta of 0.71, is enter your response here%. (Round to two decimal places.) Part 2 b. The expected rate of return for security T, which has a beta of 1.62, is enter your response here%. (Round to two decimal places.) Part 3 c. The expected rate of return for security P, which has a beta of 0.89, is enter your response here%. (Round to two decimal places.) Part 4 d. The expected rate of return for…
The following information is available for entity RR:2021 2020Share price as at 31 December R9.05 R5.12Earnings per share for the year to 31 December R0.65 R0.38Dividend per share for the year to 31 December R0.17 R.30Required:a) i) calculate the P/E ratio and the dividend yield for RR at 31 December 2021 and comparative figures for 2020.ii) Analyse the financial information for RR from the viewpoint of an investor. b) Explain the limitations that would exist if you were to compare these ratios and market information for RR with that of an entity whose shares were listed on a stock exchange in a different country.
Year Risk free rate (%) Return_risk-free asset 2011 4.51 - 2012 3.11 2013 2.61 2014 2.75 2015 2.34 2016 1.78 2017 1.77 2018 2.02 2019 0.90 2020 0.02 Average Calculate return on risk free asset and its average and assume: Average (Return on Risky Portfolio) 3.86% Standard deviation (Risky Portfolio) 10.56% Expected Return (Complete Portfolio) 7% Solve for the proportions of y and (1-y) such that: E(Rc)=Rf+y[E(rp)-rf]) = 7%
Are these defensive or aggressive in nature Weight on PG Weight on F Portfolio Return Portfolio Beta Portfolio Standard Deviation **** Portfolio Nature: Defensive/Aggressive 0 1 -0.0112 -0.8198 0.0715 0.01 0.9 -0.0096 -0.7612 0.0654 0.02 0.8 -0.0080 -0.7026 0.0597 0.3 0.7 -0.0063 -0.6440 0.0543 0.4 0.6 -0.0047 -0.5854 0.0496 0.5 0.5 -0.0030 -0.5267 0.0455 0.6 0.4 -0.0014 -0.4681 0.0425 0.7 0.3 0.0003 -0.4095 0.0405 0.8 0.2 0.0019 -0.3509 0.0399 0.9 0.1 0.0036 -0.2923 0.0407 1 0 0.0052 -0.2337 0.0428
State whether the Portfolio Nature is Defensive/Aggressive. Weight on XOM Weight on PFE Portfolio Return Portfolio Beta Portfolio Standard Deviation**** Portfolio Nature: Defensive/Aggressive 0 1 -0.0016 0.2854 0.0439 0.1 0.9 -0.0025 0.3069 0.0420 0.2 0.8 -0.0034 0.3285 0.0408 0.3 0.7 -0.0044 0.3501 0.0405 0.4 0.6 -0.0053 0.3717 0.0410 0.5 0.5 -0.0063 0.3932 0.0424 0.6 0.4 -0.0072 0.4148 0.0445 0.7 0.3 -0.0081 0.4364 0.0472 0.8 0.2 -0.0091 0.4579 0.0504 0.9 0.1 -0.0100 0.4795 0.0541 1 0 -0.0110 0.5011 0.0582
Year ASX 300 Index ASX 300 Dividend Yield (%) Return_risky portfolio 2010 4760.79 3.76 - 2011 4052.27 4.93 -0.147788 2012 4626.27 4.33 0.142718 2013 5304.8 3.99 0.147531 2014 5348.93 4.24 0.009118 2015 5249.09 4.72 -0.017783 2016 5617.73 4.09 0.071008 2017 6023.3 4.04 0.072914 2018 5596.96 4.48 -0.070038 2019 6647.74 3.95 0.188447 2020 6574.33 2.82 -0.010619 Average Std.dev 3.86% 10.56% Year Risk free rate (%) Return_risk-free asset 2011 4.51 - 2012 3.11 -0.309484 2013 2.61 -0.163052 2014 2.75 0.055662 2015 2.34 -0.150000 2016 1.78 -0.238503 2017 1.77 -0.005618 2018 2.02 0.141243 2019 0.90 -0.554455 2020 0.02 -0.977778 Average 2.18 -24.47% Calculate: Assuming E(Rc) = 7%, use E(Rc) = Rf + y* (E(Rp) - Rf) 1. % of Risky Assets: 2. % of Risk Free Assets: 3. Standard Deviation of the portfolio
Q2 - Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7Stock X 4% -2% 5% -1% 10% 7% 12%Stock Y -3% 7% 4% 2% 2% 8% -3% Consider a portfolio of 10% stock X and 90% stock Y. What is the mean of portfolio returns? Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
Question content area top Part 1 (Portfolio expected rate of return) Barry Swifter is 60 years of age and considering retirement. Barry's retirement portfolio currently is valued at $750,000 and is allocated in Treasury bills, an S&P 500 index fund, and an emerging market fund as follows: LOADING... Expected Return $ Value Treasury bills 2.5% 90,000 S&P 500 Index Fund 7.2% 410,000 Emerging Market Fund 13.5% 250,000 . a. Based on the current portfolio composition and the expected rates of return given above, what is the expected rate of return for Barry's portfolio? b. Barry is considering a reallocation of his investments to include more Treasury bills and less exposure to emerging markets. If Barry moves all of his money from the emerging market fund and puts it in Treasury bills, what will be the expected rate of return on the resulting portfolio? Question content area…
please dont provide annswer in image format thank you Question content area top Part 1 Calculate the 95% confidence intervals for the four different investments included in the following table. S&P TSX Composite Index S&P 500 Index in CAD Long-Term Gov't of Canada Bonds Canadian Treasury Bills Average Return (%) 10.31 11.84 7.38 5.39 Standard Deviation of Returns (%) 16.24 18.27 10.09 4.21 Question content area bottom Part 1 The 95% confidence interval of the S&P TSX Composite Index is between enter your response here% and enter your response here%. (Round to two decimal places. Use ascending order.)

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