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Finance - Four Misc. Problems




Question;1. What is the NPV, IRR, PBP and PI of the following;set of cash flows? Discount rate 10%.;Year Cash;Flow;0 $;-26300;1 8400;2 11300;3 16500;2. Your portfolio has provided you with returns of;8.6 percent, 14.2 percent, -3.7 percent, and 12.0 percent over the past four;years, respectively. What are the arithmetic average return and the geometric;average return for this period?;3. Show the effect on;price (increase, decrease, no effect) for each of the following;situations under three form of market efficiency (5 Points);Situations;Weak;Semi-strong;Strong;The WSJ publishes;that Landmark Inc. declared a dividend of $1 per share;Landmark Inc.;board members decide in a closed door meeting to open a new factory in Taiwan;Your broker in;NYSE tells you that Landmark Inc. CEO is going to declare retirement;4.Given the following information;calculate the portfolio return, portfolio risk (standard deviation), and;portfolio beta.;Stock A;Stock B;Return;0.07;0.10;Risk (Standard Deviation);0.12;0.18;Correlation (RA, RB);0.4;$ Invested;10,000;30,000;Beta;0.8;1.12


Paper#50076 | Written in 18-Jul-2015

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