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Author Question: Tom wishes to calculate the riskiness of his portfolio, which is comprised of equal amounts of two ... (Read 290 times)

lunatika

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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


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jonathanballen97

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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

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Reply 2 on: Jul 10, 2018
:D TYSM

adf223

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

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