Author Question: The Horizons Bull Plus Fund seeks daily investment results that correspond to two times (200) the ... (Read 118 times)

Charlie

  • Hero Member
  • *****
  • Posts: 640
The Horizons Bull Plus Fund seeks daily investment results that correspond to two times (200) the daily performance of the S&P 500 Index.
 
  If you wanted to build a portfolio out of T-Bills and the S&P Index to mimic the performance of the Bull Plus Fund, then what are the portfolio weights? Assume that the expected return on the S&P index is 10, the risk free rate is 4.
  A) wS&P = 1.5 and wT-Bill = -0.5
  B) wS&P = 1.67 and wT-Bill = -0.67
  C) wS&P = 2 and wT-Bill = -1
  D) wS&P = 2.33 and wT-Bill = -1.33
  E) wS&P = 2.67 and wT-Bill = -1.67

Question 2

Determination of safety stock involves a trade-off between the risk of a stock-out and increased
  costs of carrying additional inventory.
 
  Indicate whether the statement is true or false



kmb352

  • Sr. Member
  • ****
  • Posts: 319
Answer to Question 1

E

Answer to Question 2

TRUE



Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
 

Did you know?

Only one in 10 cancer deaths is caused by the primary tumor. The vast majority of cancer mortality is caused by cells breaking away from the main tumor and metastasizing to other parts of the body, such as the brain, bones, or liver.

Did you know?

Adolescents often feel clumsy during puberty because during this time of development, their hands and feet grow faster than their arms and legs do. The body is therefore out of proportion. One out of five adolescents actually experiences growing pains during this period.

Did you know?

Cytomegalovirus affects nearly the same amount of newborns every year as Down syndrome.

Did you know?

This year, an estimated 1.4 million Americans will have a new or recurrent heart attack.

Did you know?

Atropine was named after the Greek goddess Atropos, the oldest and ugliest of the three sisters known as the Fates, who controlled the destiny of men.

For a complete list of videos, visit our video library