Currently an investor is considering investing his funds in shares between the shares of 3 companies   The alternatives to consider are: Alt. I: 100% shares of PT. C Alt. II. : 50% shares of PT. B and 50% shares of PT. C AIt. II: 60% shares of PT. A and 40% of PT. B The stock return patterns of each company during 2021 - 2025 are as follows:   Tahun   Expected Return %   PT. A PT. B PT. C 2021 65 65 55 2022 62 45 57 2023 53  62 40 2024 55 64 42 2025 41 50 47   Based on this data Calculate the expected return, standard deviation and coefficient of variation for each alternative! If the investor is someone who is risk averse, then which alternative will be the most efficient for this investor to choose? Explain your answer The measurement of the amount of risk can be done using several methods depending on the investment in a single asset or portfolio. Briefly explain the company's objective of diversifying its investment in the form of a portfolio and how to calculate the expected return and risk of the portfolio

XYZ's stock price and dividend history are as follows: Year Beginning-of-Year Price Dividend Paid at Year-End 2019 $ 155 2020 185 2021 145 2022 155 Arithmetic average rate of return Geometric average rate of return An investor buys three shares of XYZ at the beginning of 2019, buys another two shares at the beginning of 2020, sells one share at the beginning of 2021, and sells all four remaining shares at the beginning of 2022. $ 3 3 3 Required: a. What are the arithmetic and geometric average time-weighted rates of return for the investor? (Round your year-by-year rates of return and final answers to 2 decimal places. Do not round other calculations.) % % Dollar-weighted rate of return wwww 3 % b. What is the dollar-weighted rat of return? (Hint. Carefully prepare a chart of cash flows for the four dates corresponding to the turns of the year for January 1, 2019, to January 1, 2022. If your calculator cannot calculate IRR, you will have to use trial and error or a spreadsheet…

You are considering purchasing a share of preferred stock with the following characteristics:                                                 par value                      =          $100                                     dividend rate               =          12% per year                                     payment schedule       =          quarterly                                     maturity date              =                                              required rate of return =          6% per year                                     current market price    =          $135 per share   Based on this information, answer the following:   A.  What is the dollar amount of the quarterly dividend on this stock?   B.  Using the Discounted Cash Flow Method, what is the dollar value of this stock?   C.  Using the Discounted Cash Flow Method, what is the annual expected return for this stock?   D.  Based on your answer to part B, should you invest in the stock?  Why or why not?   E.…

The investment funds for your company includes the following: Stock $ Amount Invested Beta for Each Stock A $    600,000     .8 B $ 1,800,000     1.4 C $ 2,400,000     1.7 D $    700,000      -.6 E $ 3,000,000      1.1 You need to calculate the required rate of return for the investment. The market’s required return for Year 2020 is 12% and the risk free rate is 3% Show your work on the following: Calculate the average beta for the portfolio. Calculate the required rate of return for the entire portfolio. The CFO of your company is anticipating that the stock market will be decreasing in the near future. Please give a recommendation on which stock the company should sell and which stock the company should buy.  The CFO also wants you to explain your answer.

EXCEL PROJECT AND EXCEL SOLUTION Consider the following stocks, all of which will pay a liquidating dividend in a year and nothing in the interim: Stock A Stock B Stock с Stock D Market Capitalization (5 million) 800 750 950 900 Expected Liquidating Dividend ($ million) 1000 1000 1000 1000 Beta PLEASE SHOW SOLUTIONS IN EXCEL 0.77 1.46 1.25 1.07 a. Calculate the expected return of each stock. b. What is the sign of correlation between the expected return and market capitalization of the stocks? In Problem 20, assume the risk-free rate is 3% and the market risk premium is 7%. a. What does the CAPM predict the expected return for each stock should be? b. Clearly, the CAPM predictions are not equal to the actual expected returns, so the CAPM does not hold. You decide to investigate this further. To see what kind of mistakes the CAPM is making, you decide to regress the actual expected return onto the expected return predicted by the CAPM.49 What is the intercept and slope coefficient of…

You are evaluating a company's stock. The stock just paid a dividend of $1.75. Dividends are expected to grow at a constant rate of 5 percent for a long time into the future. The required rate of return (Rs) on the stock is 12 percent. What is the fair present value? Multiple Choice O O E $26.25 $22.50 $35.26 $50.25 Q Search $ 4 R is do F % 5 164- T 8 N 10 DII K M O O ENG D

Pls show complete steps and explanation the formula used

Expected Return of Preferred Stock Blume Corp, issued preferred stock with a par value of $100 and an annual dividend rate of 99% What is the expected return of this stock if the current price is: b. G d. $78 $90 $150 What relationship do you see between price and expected return?

1

Pls show all parts or skip