As the number of securities in a portfolio is increased, what happens to the average portfolio standard deviation?

Q: Problem 16-5 MM and Stock Value Foundation Corporation is comparing two different capital structures...

A: Capital structures includes the equity debt mix which is to be used by entities in financing theory ...

Q: ​Often, through​ government-supported programs, students may obtain​ "bargain" interest rates such a...

A: Installment payment has two components as first interest amount and second principal amount utilized...

Q: Suggest how stockholders' direct engagement with managers and management remuneration may be utilise...

A: “Hi There, Thanks for posting the questions. As per our Q&A guidelines, must be answered only on...

Q: Calculate the Black-Scholes price of a Call option where: S = $50 K = $45 %3D T-t=.25 O = .20 r = .0...

A: Stock Price S  $                             50.00 Strike Price K  $                             4...

Q: ABC Corp has an average inventory period (production process time + time before sale) of 36 days. Ac...

A: Short term operating cycle refers to the time required to sell the inventory and realize cash from s...

Q: David is planning to buy a new car. Since David has not save any money, he plans to take out a loan ...

A: Present Value of Ordinary Annuity refers to a concept that determines the value of cash flows at pre...

Q: who are still dependent. He received a $150,000 lump-sum retirement bonus and will receive $2,800 pe...

A: Prices increase each year by the rate of inflation and may grow to double from existing levels over ...

Q: 22.Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round y...

A: Compound amount (FV) = $26,500 Period = 18 Months Semi annual period (n) = 18/6 = 3 Interest rate = ...

Q: d) You want to retire in 45 years with $1 million in the bank. You think you can get an average of 5...

A: Time value of money (TVM) is used to measure the value of money at different point of time in the fu...

Q: рауm parents agree to lend her money at an annual rate of 5%, charged as sir interest. They lend her...

A: Simple interest is plain simple and there is no interest on interest and so there is no compounding ...

Q: Identify the following if it is an example of COMMERCIAL BANK, THRIFT BANK, GOVERNMENT BANK, PRIVATE...

A: Banks is referred as the financial institution, which helps in accepting the deposits from public as...

Q: Is corrective action always necessary when actual costs are higher than standard costs

A: A company which manufactures products and goods keeps a sharp eye on its costs. When the actual cost...

Q: An investment has the following annual cash flow 1st year-Php50,000 2nd year- Php 65,000 3rd year- P...

A: NPV is the difference between present value all cash inflows and initial investment. NPV =pv of all ...

Q: The average annual return on the S&P 500 Index from 1986 to 1995 was 15.8 percent. The average annua...

A: The market risk premium is the risk premium given to the equity due to the overall market risk of se...

Q: Compute for the Average Collection Period, use 360 days Final answers should be in 2 decimal places ...

A: In finance we often use the average collection period as one of the financial metrics.  This metric ...

Q: 20.Calculate the present value (principal) and the compound interest (in $). Use Table 11-2. Round y...

A: The present value and interest figure can be calculated as per principle of time value of money

Q: Please show the solution 1. What is the present worth of 4100 deposited at the end of every three mo...

A: Hai There! Thank you for the question. Post has multiple sub parts, as per company authoring guideli...

Q: Student A wishes to invest in cryptocurrency, how long will it take to double his investment when he...

A:  Future Value refers to the value of the current asset or investment or of cash flows at a specified...

Q: If money is worth 5% compounded semi-annually, find the present value of a  sequence of 12 semi-annu...

A: The present value of annuity needs to be calculated at the end of 4th year. Post that, the present v...

Q: A loan for RM6,500 with a simple interest rate of 18% was made on June 15 and due on September 15. ...

A: Loan amount (P) = RM6500 Interest rate (r) = 18% Period from June 15 to September 15 (d) = 92 days

Q: Anderson Steel Company began 2021 with 570,000 shares of common stock outstanding. On March 31, 2021...

A: Basic earnings per share Basic earnings per share is calculated considering the outstanding shares b...

Q: Atlantis Fisheries issues zero coupon bonds on the market at a price of $537 per bond. Each bond has...

A: Yield to Maturity for zero coupon Bonds  =(Face value)/Present value)1/n- 1)   

Q: Commercial Bank of Windhoek has credited Upington Solar Corporation with R550m, with a maturity of t...

A: Data given:: Loan amount = R 550 m Expected loss = R 16.5 m Recovery rate = 23%   Required:: Probabi...

Q: Explain the mode of delivery in foreign contracts.

A: It is defined as the delivery as a part of the contract of trade between the seller and the buyer.  ...

Q: Suppose that P400 is deposited each year into a bank account that pays 8% interest annually. If 12 p...

A: Annual deposit (A) = P 400 n = 12 payments r = 8% Let the accumulated value = X

Q: The following data relate to a listed company. • Current share price = $160 • Exercise price = $19...

A: Given: Given: Particulars Amount Spot price $160.00 Standard deviation 40% Risk free rate 5...

Q: A 5-year project will require an investment of $100 million. This comprises of plant and machinery w...

A: Since you have posted a question with more than three sub-parts, we will solve the first three sub-p...

Q: . In order for Linda to reach her saving goal. How much will Linda need to save each money b. Overal...

A: Future Value of Annuity: It represents the future value of the present annuity cash flow stream. It...

Q: us ways to manage the funds of a business ente

A: Step 1 It is a way of planning, organizing, managing, and analyzing financial resources to meet the ...

Q: otal return= 10% with profitability 50% total return= 20% with profitabili...

A: The expected return is derived by dividing the number of possible outcomes (yields) by the probabili...

Q: Bank Balance Sheet Assets Liabilities and Equity Reserves $20,000 Deposits $100,000 Loans 95,000 Deb...

A: When the total debt is divided by the total equity the outcome is known as the equity multiplier. It...

Q: A man invests in a project that requires a fixed capital of P 2.5 M with no salvage, and life of 12 ...

A: The period in which the initial investment is recovered is known as the pay-out period. It is calcul...

Q: Identify methods for using and analysing working capital cycles ( max. 300 words )

A: The time it takes to convert net current assets and current liabilities (such as purchased stock) in...

Q: You have $10,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of...

A: Amount available to invest = $ 10000Return of X = 12.4%Return of Y = 10.1% Desired return from portf...

Q: (iv) Find the discounted paybacks for Projects L and S. According to the payback criterion, which pr...

A: The discounted payback period is computed by using the present value of cash flows where the investo...

Q: Galvanized Products is considering purchasing a new computer system for their enterprise data manage...

A: 1. Computation of loan amount. Amount of loan = 100000 × 25% = 25000 Loan including interest = 25000...

Q: January February March 15,000 Sales in units.. 20,000 18,000 Production in units.. 18,000 19,000 16,...

A: This pertains to production budget in finance. We often make different types of budget in finance an...

Q: If $800 is borrowed and the interest after 6 months is $44, what is the annual interest rate for a s...

A: Principal Amount = $800 Time Period = 6 Months Interest = $44    

Q: Velma, a 59-year-old minority woman who works as a teacher, contacts you about getting a loan to pur...

A: Adjustable-rate mortgage (ARM) is also known by the name variable rate mortgage. The initial interes...

Q: no preferred stock. The yield to at the company's WACCs 12.60% What is Pearson's cost of common equi...

A: Weighted average cost of capital is the cost o capital considering the weight of the different compo...

Q: A study is conducted among senior citizen 60 - 95 years of age staying in home for the aged. We are ...

A:     Mortality Rate Conditional Probability   A1 60-69 0.057 0.33 0.01881 A2 70-79 0.018 0.48 0.0...

Q: If money is worth 5% compounded semi-annually, find the present value of a sequence of 12 semi-annua...

A: Present value of sequence is value today considering the interest rate and the period of annuity and...

Q: To help buy his new townhome, Bill is taking out a s163,000 mortgage loan for 30 years at 3.4% annua...

A: Here, Loan amount = $163,000 Rate of interest = 3.4% Number of year = 30 years Monthly payment of lo...

Q: On January 1, 2021, Canada Corp. purchased 4-year bonds with a face value of P7,300,000 and a stated...

A: Bonds that are held till maturity are recorded at cost including associated cost. Any discount or pr...

Q: Cost of commercial paper Commercial paper is usually sold at a discount. Fan Corporation has just so...

A: commercial paper is the short-term money market instrument that is issued by the company to meet its...

Q: #2 John is saving for his retirement by making annual end of year deposits for 30 years into a bank ...

A: The value of an annuity: The value of an annuity or one growing at a constant pace at the end of an ...

Q: On January 1, 2020, Janet buys a bond for P10,000 that will make coupon payments of P600 after each ...

A: Annual coupon (C) = P 600 Number of coupons remaining (n) = 1 r = 4% Face value (F) = P 10000

Q: Derrick recently graduated. He owes $17,525 in student loans with APR of 4.6% compounded monthly. He...

A: As per our guidelines, we are supposed to answer only 3 sub-parts (if there are multiple sub-parts a...

Q: Consider the following four debt securities, which are identical in every characteristic except as n...

A: Interest rate or YTM of a bond Yield to maturity (YTM) of a bond is the total anticipated return on ...

Q: FedEx Corp. stock ended the previous year at $103.39 per share. It paid a $0.35 per share dividend l...

A: Since the dollar return is over all income and capital return in a given period. Dollar Return= (End...