This topic contains a solution. Click here to go to the answer
« previous next »

Author Question: Tom wishes to calculate the riskiness of his portfolio, which is comprised of equal amounts of two ... (Read 271 times)

lunatika

  • Hero Member
  • *****
  • Posts: 548
on: Jul 10, 2018
Tom wishes to calculate the riskiness of his portfolio, which is comprised of equal amounts of two stocks. Which of the following measures would you recommend?
 
  A) Weighted average betas of the two securities
  B) A weighted average of the correlation between the two securities
  C) Weighted average standard deviations
  D) The slope of the security market line
  E) A weighted average of the coefficients of variation

Question 2

Five years ago, Thompson Tarps Inc. issued twenty-five-year 10 annual coupon bonds with a 1,000 face value each. Since then, interest rates in general have risen and the yield to maturity on the Thompson bonds is now 12.
 
  Given this information, what is the price today for a Thompson Tarps bond?
  A) 843.14
  B) 850.61
  C) 1,181.54
  D) 1,170.27


Related Topics

Need homework help now?

Ask unlimited questions for free

Ask a Question
Marked as best answer by a Subject Expert

jonathanballen97

  • Sr. Member
  • ****
  • Posts: 347
Reply #1 on: Jul 10, 2018
Answer to Question 1

A

Answer to Question 2

Answer: B
Explanation: B)
Bond Price = PMT  +
= 100  + = 850.61.

MODE = END
INPUT 20 12 0 -100 -1,000
KEY N I/Y PV PMT FV
CPT 850.61


lunatika

  • Member
  • Posts: 548
Reply 2 on: Jul 10, 2018
Thanks for the timely response, appreciate it

kishoreddi

  • Member
  • Posts: 329
Reply 3 on: Yesterday
Great answer, keep it coming :)

« previous next »
 

Did you know?

Before a vaccine is licensed in the USA, the Food and Drug Administration (FDA) reviews it for safety and effectiveness. The CDC then reviews all studies again, as well as the American Academy of Pediatrics and the American Academy of Family Physicians. Every lot of vaccine is tested before administration to the public, and the FDA regularly inspects vaccine manufacturers' facilities.

Did you know?

Normal urine is sterile. It contains fluids, salts, and waste products. It is free of bacteria, viruses, and fungi.

Did you know?

The ratio of hydrogen atoms to oxygen in water (H2O) is 2:1.

Did you know?

Bacteria have flourished on the earth for over three billion years. They were the first life forms on the planet.

Did you know?

The average person is easily confused by the terms pharmaceutics and pharmacology, thinking they are one and the same. Whereas pharmaceutics is the science of preparing and dispensing drugs (otherwise known as the science of pharmacy), pharmacology is the study of medications.

Torque is a twisting force equal to the distance from the pivot point times the force applied ... Torque is a twisting force equal to the distance from the pivot point times the force applied ...
Calculate the physical variables Calculate the physical variables
How to calculate the gain and loss gene numbers with low bootstrap of phylogenetic tree? How to calculate the gain and loss gene numbers with low bootstrap of phylogenetic tree?
Calculate ΔS° Calculate ΔS°
A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ... A portfolio earned -13%, 18%, 5%, 24%, and -5% in five successive years. What was the ...
Gray Morris's Calculate with Confidence, Canadian Edition, 2nd Edition Gray Morris's Calculate with Confidence, Canadian Edition, 2nd Edition
Video: Humerus Adduction Animation

For a complete list of videos, visit our video library