Addendums - Chapter 2 - Measuring Portfolio Return 49 The...

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Chapter 2 - Measuring Portfolio Return 49 The example should read: March 31 Market Value $12,380,000.00 April 6 Dividend Payment 4,340.00 April 12 Coupon Payment 60,000.00 April 15 Pension Contribution 92,000.00 April 21 Disbursement to Pension Pay system -80,000.00 April 30 Market Value $12,400,000.00 The equation is thus R = 12,400,000 - 15 (92,000) - 21 (-80,000) = 12,410,000 = 1.000645057 = 1 + 0.0645% 30 30 12,380,000 + 15 (92,000) + 9 (-80,000) 12,402,000 30 30 51 The example should read: John Q. Investor put his money into Exxon Mobil (XOM) at the beginning of 2006. The rates of return for the first three months of 2006 for Exxon Mobil were Chapter 4 - Diversification 74 The example should read: 1] Hypothetical Resources (HR) has an expected return of 21% with a standard deviation of 40% E[R HR ] = 0.21 sigma HR = 0.40 CV HR = 1.905 2] Tardis Intertemporal (TI) has an expected return of 15% with a standard deviation of 20% E[R TI ] = 0.15 sigma TI = 0.20 CV TI = 1.33 77 The equation block at the bottom of the page is missing a subscript. 85 Question 4-7 refers to Figure 4-2 not 7-4. Chapter 5 - Modern Portfolio Theory 89 Where beta=2 at the bottom of the page 200% Risk free: Index Fund: Portfolio: -$1,000,000. $2,000,000. $1,000,000. @3.2% @11.2% = = - $1,032,000. $ 2 ,224,000. $1,192,000. Chapter 8 - Owning and Trading Equities 126 Under 8.1.3 Stop Order the buy order should read:
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Buy 1000 DVC stop $110 : Chapter 10 - Money Markets 162 Under Money Market Yield the first equation should read: = $5,000.00 = 0.0052356 = 0.52356% $9 9 5,000.00 162 Under Money Market Yield the final sentence before the equation should read: Factored up to a 360 day year we calculate a money market yield of 3.015% 165 In the example the sentence should read ... we calculate a Money Market Yield of 3.000% and an ask yield of 3.027% Chapter 11 - Money Market Instruments 172 Table 11-4: Comparison of Single Price and Multiple Price Auctions on the Sample Bid Auction Results for Investments Unlimited Bid Results: Multiple Price Auction Results: Single Price Auction Quantity Rate
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Addendums - Chapter 2 - Measuring Portfolio Return 49 The...

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