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- Can someone give an example or scenario of the following: 1. Mean-Variance Analysis 2. Global minimum-variance portfolio 3. Capital allocation line (CAL) 4. Tangency Portfolio Then someone answered this, Im looking for the continuation. Thankyou :) “Since you have posted a question with multiple sub-parts, we will solve first three sub parts for you. To get remaining sub-part solved please repost the complete question and mention the sub-parts to be solved.” The process of evaluating a level of risk denoted as a variance, which an individual will encounter for a certain expected return is known as mean-variance analysis. Investors are concerned about mean-variance analysis for better decision making regarding investments.Explanation:Mean variance analysis: Mean variance method is used in the scenarios where stock deviates from mean position and variance can be computed over a standard deviation. Stocks in the particular portfolio can be correlated under mean variance analysis.Global…Explain in general terms what each of the following real options is and how it could changeprojects’ NPVs and their corresponding risk relative to what would have been estimated ifthe options had not been considered.a. Abandonmentb. Timingc. Growthd. Flexibilityn 0 1 2 3 4 5 6 7 8 9 10 A -$250 $60 $970 B -$200 $90 $90 $60 $60 Net Cashflow с -$70 $20 $10 $5 -$50 $60 $50 $40 $30 $20 $10 D -$300 $270 $250 -$129 -$20 $120 $40 E -$90 -$100 -$50 $0 $150 $150 $100 $100
- eathree o qucu oesi? of e tos What does the beta of the project represent and how will higher project betas affect your decision? vat4.What is the expected return, Standard denation and Coeknicient of vanation of an equally werghted port folLo OF technology, T-bills and inernatin et Funds? tiDW does your Dort folio risk and return compane to that Of the Spp500 index?The period of time, or width of the “window,” over which alternatives will becompared is also known as the: a. Planning horizon b. Shortest life c. Minimum Attractive Rate of Return d. Do-nothing alternative
- Can I calculate the Rate of Return using the NPV/initial investment? Why or why not?Calculated risks mean ________________A. Knowing what is the limit of every decisionB. Studying every angle of opportunity before hopping inC. Development of opportunity profile for a certain opportunityD. All of the aboveIn CAPM and your CAPM Project, the beta of AAPL was computed by regressing the returns of what Y= on what X= Y=S&P500 on X=AAPL ? Y=AAPL on X=Risk free rate Y=AAPL minus the Risk free rate on X=AAPL minus S&P none of the above
- Can someone give an example or scenario of the following: 1. Mean-Variance Analysis 2. Global minimum-variance portfolio 3. Capital allocation line (CAL) 4. Tangency PortfolioQ11. n is the number of periods of an investment, PV is the starting value, FVn is the future value n periods ahead, and ^ means 'to the power of'. What is the correct formula for calculating return? Group of answer choices 1. (FVn/PV)^n - 1 2. (FVn/PV)^n 3. (PV/FVn)^n - 1 4. 1 - (FVn/PV)^nManagement has constructed the below table of estimates reflecting the possible returns and probabilities for pessimistic, most likely and optimistic results. Possible outcomes probability return(n$) Pessimistic 0.4 14.00 Most likely 0.2 34.00 Optimistic 0.4 6.00 a) Determine the expected value of return for the above company b) What is the risk involved if the company chooses to invest in the above opportunity?