6. Assume that the expected returns of the five portfolios are the same but their standard deviations are as follows. Which of these five portfolios is most risky?

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24. A portfolio manager has decided to invest a total of $2 million on US and Japanese portfolios. The expected returns are 12 percent on the US portfolio and 20 percent on the Japanese portfolio. What is the expected return of an international portfolio with 40 percent invested in the US portfolio and 60 percent invested in the Japanese portfolio?

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25. Kenneth Shad has decided to invest a total of $200,000 on US and French portfolios. The expected returns are 20 percent on the French portfolio and 17 percent on an international portfolio. The international portfolio consists of 60 percent invested in the US portfolio and 40 percent invested in the French portfolio. What is the expected return on the US portfolio?

asked 12 years ago in Economics by anonymous

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28. A firm's next year earnings are expected to be $4.00 per share, and the firm follows a practice of paying out 60 percent of earnings as dividends. The long-term growth rate for this firm is 5 percent and the appropriate discount rate is 12 percent. What is the price of this stock?

asked 12 years ago in Economics by anonymous

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26. Assume that the per-share prices of a common stock are $40, $50, and $60 for three days. Calculate the average price, the standard deviation, and the coefficient of variation for the stock.

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13. A multinational company is considering the establishment of a two-year project in Germany with a $8 million initial investment. The company's cost of capital is 12 percent. The required rate of return on this project is 18 percent. The project with no salvage value after two years is expected to generate net cash flows of 12 million euros in year 1 and 30 million euros in year 2. Assume no taxes and a stable exchange rate of $0.60 per euro. What is the net present value of the project in dollar terms?

asked 12 years ago in Economics by anonymous