{[ promptMessage ]}

Bookmark it

{[ promptMessage ]}

Extra Credit Assignment 3

Extra Credit Assignment 3 - mess(Assume no short selling is...

Info icon This preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Extra Credit Assignment #3 EC370 – W09 This assignment is due in class on 3/12. All answer must be typed or copy/pasted directly from Excel. 1) Since August 2007, how many times has the S&P moved by more than 3% in a single day (open to close)? How about between Jan, 1 1990 and August 2007? Briefly explain how to do this. Hint: yahoo finance has historical prices 2) Consider the period given on worksheet #2 of the excel file. What was the best 4 month period to implement the strategy that contributed to the demise of LTCM? Hint: You only need to use some of the series I have given to you. Briefly explain how to do this. 3) Plot the “efficient frontier” generated by combinations of the securities in the excel worksheet. Your graph should be labeled very clearly and not look like a
Image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: mess. (Assume no short selling is allowed) What is the Expected Return and Variance for the minimum variance portfolio? Hint: You will need to use the Solver which works in a similar way to Goal Seek. Additionally, you will need the formulas in the asset valuation lecture and figure out how they change when you have three securities instead of two. 4) In worksheet 4, I list a series of cash flows. Assume a discount rate equal to 4%. What is the most you would pay for these cash flows at the end of Year 1? Year 3? Year 7? If you pay $4,000 at the beginning of Year 1 (end of Year 0 if you like…), what is the yield to maturity? Copy/paste your output from Excel. The more information you can show (coherently) the better....
View Full Document

{[ snackBarMessage ]}

What students are saying

  • Left Quote Icon

    As a current student on this bumpy collegiate pathway, I stumbled upon Course Hero, where I can find study resources for nearly all my courses, get online help from tutors 24/7, and even share my old projects, papers, and lecture notes with other students.

    Student Picture

    Kiran Temple University Fox School of Business ‘17, Course Hero Intern

  • Left Quote Icon

    I cannot even describe how much Course Hero helped me this summer. It’s truly become something I can always rely on and help me. In the end, I was not only able to survive summer classes, but I was able to thrive thanks to Course Hero.

    Student Picture

    Dana University of Pennsylvania ‘17, Course Hero Intern

  • Left Quote Icon

    The ability to access any university’s resources through Course Hero proved invaluable in my case. I was behind on Tulane coursework and actually used UCLA’s materials to help me move forward and get everything together on time.

    Student Picture

    Jill Tulane University ‘16, Course Hero Intern