Assume the expected return on an SP500 index fund is 8% and the Treasury bill yield is 1%. The standard deviation of the SP500 return is 20% What are the expected returns and variances of portfolios invested in T-Bills and SP500 with SP500 weights 0%, 20%, 30%, 40%, 50%, 60%, 70%, 80%, 90%, and 100%? Assuming quadratic utility, what is the maximum utility portfolio for an investor with risk aversion parameter A=2 or A=4
Answers: 3
Business, 22.06.2019 11:10
Verizon communications, inc., provides the following footnote relating to its leasing activities in its 10-k report. the aggregate minimum rental commitments under noncancelable leases for the periods shown at december 31, 2010, are as follows: years (dollars in millions) capital leases operatingleases 2011 $97 $1,898 2012 74 1,720 2013 70 1,471 2014 54 1,255 2015 42 1,012 thereafter 81 5,277 total minimum 418 $ 12,633 rental commitments less interest and (86) executory costs present value of 332 minimum lease payments less current (75) installments long-term obligation $257 at december 31, 2010 (a) confirm that verizon capitalized its capital leases using a rate of 7.4 %. (b) compute the present value of verizon's operating leases, assuming an 7.4% discount rate and rounding the remaining lease term to 3 decimal places. (use a financial calculator or excel to compute. do not round until your final answers. round each answer to the nearest whole number.)
Answers: 2
Business, 22.06.2019 11:50
After graduation, you plan to work for dynamo corporation for 12 years and then start your own business. you expect to save and deposit $7,500 a year for the first 6 years (t = 1 through t = 6) and $15,000 annually for the following 6 years (t = 7 through t = 12). the first deposit will be made a year from today. in addition, your grandfather just gave you a $32,500 graduation gift which you will deposit immediately (t = 0). if the account earns 9% compounded annually, how much will you have when you start your business 12 years from now?
Answers: 1
Assume the expected return on an SP500 index fund is 8% and the Treasury bill yield is 1%. The stand...
Mathematics, 28.01.2020 15:02
History, 28.01.2020 15:02
Mathematics, 28.01.2020 15:02
Mathematics, 28.01.2020 15:02
Biology, 28.01.2020 15:03
French, 28.01.2020 15:03
Health, 28.01.2020 15:03
Mathematics, 28.01.2020 15:03
Mathematics, 28.01.2020 15:03
Chemistry, 28.01.2020 15:03
Mathematics, 28.01.2020 15:03