Copy of FCF 9th edition Chapter 13

Copy of FCF 9th edition Chapter 13 - Chapter 13 Problems...

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Unformatted text preview: Chapter 13 Problems 1-28 Input boxes in tan Output boxes in yellow Given data in blue Calculations in red Answers in green NOTE: Some functions used in these spreadsheets may require that the "Analysis ToolPak" or "Solver Add-In" be installed in Excel. To install these, click on the Office button then "Excel Options," "Add-Ins" and select "Go." Check "Analyis ToolPak" and "Solver Add-In," then click "OK." Chapter 13 Question 1 Input area: Shares of A 180 Share price of A $45.00 Shares of B 140 Share price of B $27.00 Output area: Portfolio value $11,880 Weight of A 0.6818 Weight of B 0.3182 Chapter 13 Question 2 Input area: Stock A value $2,950 Stock B value $3,700 Stock A E(R) 11.00% Stock B E(R) 15.00% Output area: Portfolio value $6,650 Weight of A 0.4436 Weight of B 0.5564 Portfolio E(R) 13.23% Chapter 13 Question 3 Input area: Weight of X 60.00% Weight of Y 25.00% Weight of Z 15.00% Stock X E(R) 9.00% Stock Y E(R) 17.00% Stock Z E(R) 13.00% Output area: Portfolio E(R) 11.60% Chapter 13 Question 4 Input area: Portfolio value $10,000 Stock X E(R) 14.00% Stock Y E(R) 10.50% Portfolio E(R) 12.40% Output area: Weight of Stock X 0.5429 Weight of Stock Y 0.4571 Dollar in Stock X $5,428.57 Dollars in Stock Y $4,571.43 Chapter 13 Question 5 Input area: State Probability Return Recession 0.25-0.08 Boom 0.75 0.21 Output area: State Probability Return Product Recession 0.25 (0.08) (0.0200) Boom 0.75 0.21 0.1575 Expected return 0.1375 Chapter 13 Question 6 Input area: State Probability Return Recession 0.20 (0.05) Normal 0.50 0.12 Boom 0.30 0.25 Output area: State Probability Return Product Recession 0.20 (0.05) (0.0100) Nprmal 0.50 0.12 0.0600 Boom 0.30 0.25 0.0750 Expected return 0.1250 Chapter 13 Question 7 Input area: State Probability Stock A Stock B Recession 0.15 0.05 (0.17) Normal 0.65 0.08 0.12 Boom 0.20 0.13 0.29 Output area: Stock A Probability Return Product Product Recession 0.15 0.05 0.0075 (0.0355) 0.00126 0.0001890375 Normal 0.65 0.08 0.0520 (0.0055) 0.00003 1.96625E-005 Boom 0.20 0.13 0.0260 0.0445 0.00198 0.00039605 E(R) = 8.55% Variance = 0.00060 Standard Deviation = 2.46% Stock B Probability Return Product Product Recession 0.15 (0.17) (0.0255) (0.2805) 0.07868 0.0118020375 Normal 0.65 0.12 0.0780 0.0095 0.00009 5.86625E-005 Boom 0.20 0.29 0.0580 0.1795 0.03222 0.00644405 E(R) = 11.05% Variance = 0.01830 Standard Deviation = 13.53% Return Deviation Squared Deviation Return Deviation Squared Deviation Chapter 13...
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This note was uploaded on 02/12/2012 for the course BT 1003 taught by Professor As during the Spring '11 term at American Jewish University.

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Copy of FCF 9th edition Chapter 13 - Chapter 13 Problems...

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