Assignment #2 Due Next Wed:
Conglomerated Industries has four divisions, each worth about one-quarter of the rms value. The
following chart summarizes the possible returns on the divisions as well as on the market portfolio:
Answers for Assignment #1
a. The expected rate of return is the weighted average of the expected rates in the portfolio.
The portfolio weights should be rst determined to nd the expected rate of return on the portfolio.
Since you have invested
1. You are supposed to work in groups on each case.
2. You can discuss the cases with each other, but your analysis and answers
should be provided by you only.
3. You could make the analysis as extensive as you like, but the emphasis
Risk Management- Part I, Fall 2012
1- Form a group of your choice.
2- Due date for the project is the last week of classes (tentative).
3- You are not responsible for Part B- It is included in the project to help you develop some of the
Cash flow provided by operating activities
Net earnings depreciation and amortization
cash from (used in) other income statement adjustments
cash from (used in) non -cash working capital
$4.5 million $143.1 million $7.6 million $8.
Objectives and Questions that could be raised and discussed
This project will give students an introduction and understanding to the wide range of
concerns facing businesses today. Students are supposed to be dealing with issues
appendix A Present Value
appendix A Tables
bre84034_appendix A.indd 1
modiefied on: 02:33:03 PM 09 January, 2009 output date: 02:33:30 PM 09 Ja
Assignment # 2
Do the following problems from
Q10, Q16 and Q 19
Q3, Q10 and Q12
Please note that Assignment #1 Questions were
Chapter 9: Q14, Q16, Q9 and Q28.
Chapter 9 Questions
Each dollar of sales generates $0.