Using the information in the above table answer the following questions: a. What is the expected return of a portfolio with 40% in FUSTA and 60% in FANSA? b. What are the portfolio’s variance and standard deviation using the same asset weights from part (c)?
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- New Question: Is it possible to Clarify the following Bartleby Expert Answer, with any Signs (/, *, +,-) and/or Positions (^, XY, Xy) that may be helpful? Thank you! (Original Question is also provided). Original Question: 1. Assume that net investment at time t is given by I (t) = 12t¹/², (b) (10) When the initial capital stock is 25, i.e., K (0) = 25, how can we compute the capital stock at time t?Q2) Consider the following information given below and do the following; a) Estimate monthly expected returns and the associated risk (Standard devistion) for each of the company A,B C securities b) Rank securities of company A, B, and C from the most preferred to the least preferred, assuming that the rational investor behavior holds. Year Return of Company A Return of Company B Return of Company C 1 4.20% 4.08% 1.07% -2.71% -2.73% -5.44% 4.15% 18.12% 0.74% 4 3.68% 1.60% -10.78% 2.A security analyst wants to analyze the stock of Exide Industries. Comment and analyze the stock on the following parameters: 1) ALTMAN Z Score2) ROCE3) Book Value of unquoted investment4) Market Value of Quoted Investment5) Debt to Profit In order to analyze the stock, screenshot of Exide Industries is attached below:
- ) The following questions are based on the given information from table of probability distributions of returns on investment individual shares and portfolio below: Table 3: Probability distributions of returns on investment for individual shares and portfolio. State of Probability of the States Return on Share A Return on Share B (rB) Return on Portfolio AB (ran) Economy (ra) 0.20 0.20 0.20 0.20 0.20 15% -5% 5% 35% 25% -5% 15% 25% 5% 35% 5% 5% 15% 20% 30% -234The following limited information is available for returns on two shares listed on the Lusaka Securities Exchange (LuSE) in Zambia. Year Gipley Petros 2001 0.20 0.16 2002 0.28 0.12 2003 0.36 0.10 2004 0.12 0.18 Despite the limited number of readings, a normal distribution of returns may be assumed, In addition, past performance is considered to reflect expected future performance. Required, a) Calculate for each of the shares; i. The average return ii. Standard deviation iii. Coefficient of variation b) Taking the role of an investment advisor, recommend one of the two shares to a client who wishes to make a choice between an investment in Gipley Ltd or an investment in Petros Ltd. Advise the client of some of the issues which should be considered.Identify which company’s shares you would recommend as the better investment. Provide explanations. Liquidity Panda Koala Working capital 94,100 144,750 Current ratio 2.53 2.55 Quick/acid-test ratio 1.08 1.06 Solvency Panda Koala Debt ratio 0.32 0.36 Debt-to-equity ratio 0.47 0.56 Time interest earned 23.41times 19.05times Efficiency Panda Koala Accounts (and notes) receivable turnover 20.18times 14.82times Days' sales in receivables (average collection period) 22days 27days Inventory turnover 7.70times 4.91times Days' sales in inventory 57days 82days Total asset turnover 1.83times 1.90times Profitability Panda Koala Gross profit margin 29.98 %…
- You are given the following information regarding prices for stocks of the followingfirms: PRICE Stock Number of Shares T T+ 1 ScotBank Ltd. 1,000,000 60 80 Jetvan Ltd 10,000,000 20 35 PriceLife Ltd. 30,000,000 18 25 i. Construct a price-weighted index for these three stocks and compute the percentagechange in the series for the period from T to T +1. ii. Construct a market-value-weighted index for these three stocks and compute thepercentage change in the series for the period from T to T +1. iii. Based on your answer above, which of these indexes BEST illustrate the movementon the stock market.What are the four major components of stockholders' equity? Explain each component. (Click the icon to view a list of possible explanations.) (Select the four major components of stockholders' equity and the explanation that best describes each component.) 1. 2. 3. 4. Major component Explanations Explanation a. Includes the cumulative record of: unrealized gains and losses on investment securities, unrealized pension costs, and unrealized foreign currency translation gains or losses. b. An amount that will be due within the next reporting period. c. Includes the capital stock sold by the entity at face or par value and amounts received above par value. d. The historical record of earnings that have not been paid out or distributed as dividends to shareholders. e. The amount of cash stockholders withdraw from the company's bank account. f. The amount of the subsidiary's net assets owned by outside shareholders. XAll parts are under one question therefore can be answered in full per policy. 1. Stock prices and stand-alone risk The S&P 500 Index is one of the most commonly used benchmark indices for the U.S. equity markets. Consisting of 500 companies, it is a market value-weighted index. This means that each company’s performance is reflected in the index, weighted by the ratio of the company’s value to the total value of all the companies. A. Based on your understanding of P/E ratios, in which of the following situations would the average trailing P/E ratio (current price divided by earnings per share over the previous 12 months) of the S&P 500 Index be higher? Forecast earnings for S&P 500 companies are expected to fall in the future. Forecast earnings for S&P 500 companies are expected to rise in the future. B. You invest $100,000 in only one stock. To which kind of risk will you primarily be exposed? Stand-alone risk Portfolio…
- Given below are likely returns in case of shares of Sun Ltd. and Moon Ltd. In the various economic conditions. Both shares are presently quoted at Rs. 100 per share. Economic Condition Probability Returns of Sun Ltd.(%) Returns of Moon Ltd.(%) High Growth 0.3 100 150 Low Growth 0.4 110 130 Stagnation 0.2 120 90 Recession 0.1 140 60 Compute – Expected Return and Standard Deviation for both stocks and provide your suggestion for suitable investment.The following information is related to X corporation: X's Beta was 1.3, market index 1 January 2020 was 100, market index 31 December 2020 was 110 and interest on treasury bills was 0.03 (risk free). Stock returns using the capital assets pricing model Question 20Answer a. 0.132 b. 0.143 c. 0.112 d. 0.121O Below is the stock price and dividend history for No-Cameras-Allowed Inc. (NCA), a company organizing Las Vegas retreats for investment banks. Stock Price (end-of-year) Dividend (paid during the year) Year 2019 90 180 18 2020 2021 120 6. a. Compute the annual return in 2020 and 2021. b. Compute the arithmetic average return over the 2019–2021 period. c. Compute the geometric average return over the 2019–2021 period. d. You buy 2,000 shares of NCA at the end of 2019 and hold them through the end of 2021. You reinvest any dividends received (i.e., you use the dividend proceeds to buy more shares of NCA). Except for reinvestment of dividends, you neither buy nor sell any shares before the end of 2021. Which average, arithmetic or geometric, better captures your investment performance over the 2019–2021 period? Please provide a brief explanation for your answer. B Focus MacBook Pro