Module 2 Web Exercise.
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FIN 335 Financial Markets
Southern New Hampshire University
Frank Warnock
24EW4
Module 2 Web Exercise
Chapter 1: “Working with Financial Market Data”
-What is the Dow forecast to be in six months?
According to www.forcasts.org
, in 6 months the DJIA is forecasted to be 35680, =/- 427.
-What percentage change is forecast for the next six months?
The percentage change forecasted in the next 6 months will be (35680-38691.12)/38691.12=-7.78%.
Chapter 2: “The Financial System”
-What percentage of assets do commercial banks hold in loans? What percentage of assets are held in mortgage loans?
According to the most recent report given in the source material, the total assets (in billions) are 162.7 with 43.0 being in loans, making that a percentage of (43.0/162.7)=26.42%. Same asset level of 162.7 against mortgage loans totaling 22.2 giving a percentage of 13.64%
-What percentage of assets do savings and loans hold in mortgage loans?
-What percentage of assets do credit unions hold in mortgage loans and in consumer loans?
31.3/76.4=40.97%
-What is the mission of the NYSE?
The mission of the NYSE is to promote public confidence and ensure that deals can be conducted between trusted parties.
-Firms must pay a fee to list their shares for sale on the NYSE. What would be the fee for a firm with 5 million common shares outstanding?
According to NYSE.com, “
The first time an issuer lists a class of common shares, Listing Fees are charged at a flat rate of $300,000.”
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Plz solve it within 40-50 mins I'll give you multiple upvote
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Problem Set #3
Use the following information to answer the next three questions:
The Last four years of returns for a stock are as follows:
Year 2016 2017
Return 9.5%
9.5% 19.4% -6.2%
2018
2019
18.9%
Question:
The average annual return is closest to?
9.6%
13.9%
10.4%
12.9%
14.2%
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Check my work
Problem 5-16 Value-Weighted Indexes (LO4, CFA2)
The following three defense stocks are to be combined into a stock index in January 2022 (perhaps a portfolio manager believes
these stocks are an appropriate benchmark for his or her performance). Assume the index is scaled by a factor of 10 million; that is, if
the total value of all firms in the market is $5 billion, the index would be quoted as 500.
Douglas McDonnell
Dynamics General
International Rockwell
Shares (millions)
1/1/22
Price
1/1/23
1/1/24
535
450
230
$ 89
70
99
$ 94
65
88
$ 109
79
105
a. Calculate the initial value of the index if a value-weighting scheme is used.
Note: Round your answer to 2 decimal places.
Index value
b. What is the rate of return on this index for the year ending December 31, 2022? For the year ending December 31, 2023?
Note: A negative value should be indicated by a minus sign. Do not round intermediate calculations. Enter your answers as a
percent rounded to 2 decimal places.
2022 return…
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Fast pls solve this question correctly in 5 min pls I will give u like for sure
Surbh
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Problem 12-22 Calculating Beta (LO4, CFA1)
You are given the following information concerning a stock and the market:
Year Market
2017 14%
2018 13
2019 14
2020 -14
2021 37
2022 15
Returns
a. Calculate the average return and standard deviation for the market and the stock.
Note: Use Excel to complete the problem. Do not round intermediate calculations. Enter your answers as a percent rounded to
2 decimal places.
Stock
26%
29
5
-23
16
24
Average return
Standard deviation
Correlation
Beta
Market
%
%
Stock
b. Calculate the correlation between the stock and the market, as well as the stock's beta.
Note: Use Excel to complete the problem. Do not round intermediate calculations. Round your correlation answer to 2 decimal
places and beta answer to 4 decimal places.
%
%
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1
2
A
Investment
3
Broad Stock Market Index
4 Small Capitalization Market Index
5
Local Casino
6
7
8
9
10 Yearly
Daily
Monthly
Time Period
B
Probability of Price
Increase, Daily
Time
0.5030
0.5005
0.4900
1
30
365
C
Probability of Price
Decrease, Daily
Expected Return: Daily
15 (Use cells A3 to D10 from the given information to complete this question.)
16
17
Stock Name
18 Broad Stock Market Index
19 Small Capitalization Market Index
20 Local Casino
21
22
0.4970
0.4995
0.5100
D
Expected Return:
Monthly
Size of Price Change
0.0550
0.1050
0.0500
E
11
12 Required:
13
Using the information in the tables above, please calculate the expected return of each investment over one day, one month, and one year.
14
Expected Return
Yearly
F
பட
G
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Month
Digital Cheese
Executive Fruit
January
15
%
7
%
February
–4
2
March
5
5
April
7
13
May
–5
1
June
3
5
July
–3
–3
August
–9
–1
a-1. Calculate the monthly variance and standard deviation of each stock. (Do not round intermediate calculations. Round your answers to 1 decimal places.)
a-2. Which stock is the riskier if held on its own?
b. Now calculate the variance and standard deviation of the returns on a portfolio that invests an equal amount each month in the two stocks. (Do not round intermediate calculations. Round your answers to 1 decimal places.)
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Year AT&T Stock Returns Market Index Returns
1 8 6
2 7 3
3 10 12
4 14 13
5 8 9
Compute the correlation coefficient between AT&T and the Market Index.
Enter answer using 3 decimal places. Example 0.123
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Year AT&T Stock Returns Market Index Returns
1 8 6
2 7 3
3 10 12
4 14 13
5 8 9
Compute the intercept of the characteristic line for AT&T.
Enter answer using 3 decimal places. Example: 0.123
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***
1. Ch12 Financial Planning Exercise 1
eBook
Chapter 12
Financial Planning Exercise 1
Ranking investments by expected returns
What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their
expected returns. Round the answers to two decimal places. Do not round intermediate calculations.
a. Buy a stock for $45 a share, hold it for 3 years, then sell it for $80 a share (the stock pays annual dividends of $3 a share).
d
b. Buy a security for $20, hold it for 3 years, then sell it for $60 (current income on this security is zero). Do not round intermediate
calculations.
%
c. Buy a 1-year, 12 percent note for $940 (assume that the note has a $1,000 par value and that it will be held to maturity). Do not round
intermediate calculations.
Grade it Now
Save & Continue
Continue without saving
NOV
14
O Ctv A W
MacBook Air
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Question A .On 4th September 2019, the Dow Jones Industrial Average is closed at 26355.47, the value of DJIA divisor on that date was 0.12282. Calculate the average market price of DJIA component stocks and the cost of a round lot of all DJIA components.
Full explain this question and text typing work only We should answer our question within 2 hours takes more time then we will reduce Rating Dont ignore this line
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need help with both a and b
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Please give me true answer this financial accounting question
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QUESTION 14
Use the table below to answer questions 12 through 15.
Portfolio A's Return (%)
2.15
0.89
1.15
-0.47
1.71
0.10
1.04
2.70
0.66
2.15
-1.38
-0.59
Month
January
February
March
April
May
June
July
August
September
October
November
December
Benchmark Index Return (%)
1.65
-0.10
0.52
-0.60
0.65
0.33
active strategy
C. need more information to answer the question
2.31
1.10
1.23
2.02
-0.61
-1.20
What can you say about the investment management strategy pursued by this portfolio manager?
A. passive strategy
B.
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Answer final 2
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Digital Executive
Cheese
Fruit
January
+14
+7
February
-3
+1
March
+5
+4
April
+7
+13
May
-4
+2
June
+3
+5
July
-2
-3
August
-8
-2
Required:
a-1. Calculate the variance and standard deviation of each stock.
a-2. Which stock is riskier if held on its own?
b. Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks.
c. Is the variance more or less than halfway between the variance of the two individual stocks?
Complete this question by entering your answers in the tabs below.
Req A1
Req A2
Req B
Req C
Now calculate the returns in each month of a portfolio that invests an equal amount each month in the two stocks.
Note: Negative amounts should be indicated by a minus sign. Do not round intermediate calculations. Round your answers to
2 decimal places.
Month
January
February
March
April
May
June
July
August
Portfolio
Return
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Q2
Following are four economic states, their likelihoods, and the potential returns:
Economic State
Probability
Return
Fast growth
0.30
60
%
Slow growth
0.50
13
Recession
0.15
–15
Depression
0.05
-45
Compute the expected return and standard deviation. (Round your answers to 2 decimal places.)
EXPECTED RETURN %
STANDARD DEVIATION. %
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