WINTER 2014
ACTSC 372: Corporate Finance II
Solutions
Assignment 1 (75marks)
Due Date: January 22, 2014 (in class 5:30pm)
1. (15 marks) Suppose you have invested only in two stocks, A and B. The returns on the
stocks will fall in one of the following stat
University of Waterloo
Math-Business Program
ACTSC 372: Corporate Finance II
Assignment 3: CAPM and APT
Spring 2014
Dr. H. Fahmy
The Assignment is due on Tuesday, July 8, 2014 at the beginning of class.
Instructions:
Late assignments are not acceptable.
A
Chapter 11 of Corporate Finance Chapter 8.1-8.3 of Financial Economics
(Course Reserve: HG174 F496 1998)
Modern Portfolio Theory & Capital Asset Pricing Theory (CAPM)
Lecture Notes for Actsc 372 - Fall 2008
Ken Seng Tan Department of Statistics and Actuar
Total 27 points
Assignment 3
ACTSC 372
Fall 2014
Due on Thursday December 4, 2014, in the drop box outside MC 4066.
1. Suppose you are an expected utility maximizer with utility of wealth u(w) = log(w),
w > 0. What is the maximum amount you are willing to
ACTSC 372 Assignment #3
Due March 9th at noon in the drop boxes
Question 1: Prove that = 0 + (0 )(1 ). Where is the levered equity beta, 0
is the unlevered equity beta, is the beta of debt. Show that when debt is riskless, we get the
(1 )
expression = 1 +
ACTSC 372: Corporate Finance II
Assignment 2
1. (15 marks) A portfolio that combines the risk-free asset and the market portfolio has an
expected return of 14% and a standard deviation of 36%. The risk-free rate is 5 %, and
the expected return on the mark
ACTSC 372 Review
The exam will cover the entire course. The exam will look very much like the
assignments, tests and the workbook questions.
Chapter 10: Most of this is straightforward background material. VaR will not be tested.
Chapter 11: This is all i
Method I: by
r_s=14.4%, from
CAPM, we know
Total 45 points
the equity beta is
1.88
Assignment 3 Solution
Method II: By the
ACTSC 372
Winter 2015
result of
Due on Monday March 30, 2015 by the end of the class.
Question 3, you
can calculate the
equity beta
ActSc 372 FALL 2008
Assignment 1
Due Date: September 26, 2008 (in class 2:30pm)
1. Suppose you are an expected utility maximizer with utility of wealth u(w) = w, w >
0. What is the maximum amount you are willing to pay to participate in the coin
tossing g
University of Waterloo
Exam 1 ACTSC 372 WINTER 2007 Section 001(a) February 2, 2007
UW Student ID Number: (Please write your name INSIDE the booklet ONLY).
Duration: 50 minutes There are 4 questions in this exam for a total of 30 points. This is a closed-
Actsc 372 - Assignment 1 Solution - Fall 2012
1. Suppose the economy has N = 2 assets and let denote the correlation between the two
assets.
(a) For 2 assets, the portfolio return is Rp = w1 R1 + w2 R2 . Therefore, the portfolio
expected return and varian
FALL 2014
ACTUARIAL SCIENCE 372
CORPORATE FINANCE
General information
Instructor:
Office Hours:
Lectures:
Webpage:
Fan Yang
Th 10:30am-12:00pm in M3 4117
TTh 4:00-5:20pm in DC 1350
LEARN: learn.uwaterloo.ca
Teaching Assistants: TAs emails and oce hours wi
ACTSC 372 Corporate Finance II
Assignment 2 (Solution)
1. (15 marks) A portfolio that combines the risk-free asset and the market portfolio has an expected
return of 14% and a standard deviation of 36%. The risk-free rate is 5%, and the expected return
on
Actsc 372 - Assignment 2 - Fall 2012
Due on October 31 by the end of class.
Note: You will have to use Excel in this assignment. You will not be required to submit
your le online; instead, you will submit the printout of the worksheet(s) with the required
ACTSC 372 Assignment #4
Due Monday April 2nd noon in the drop boxes
1. In this question, we will explore the irrelevance of dividend policy. Suppose XYZ
Inc currently has 1 million shares outstanding, and XYZ expects to make $1 million
per year in perpetu
Actsc 372 - Assignment 3 - Fall 2012
Due on December 3 by the end of class.
1. (Textbook Exercise 17.15) Sid Whitehead, CEO of the Weinberg Corporation, is evaluating his rms capital structure. He expects that Weinberg will have perpetual earnings
before
Assignment 3 Corporate Finance II (ACTSC372)
Due date: March 20, 5:00pm. Outside MC 6016
1. The market value of a firm with $500,000 of debt is $1.7 million. The pretax interest rate on debt is 10 percent per annum, and the company is in the 34 percent ta
ACTSC 372 Corporate Finance II
Sample questions(Chapter 14,16)
1. Cumulative Abnormal Returns The following figures present the results of four cumulative
abnormal returns (CAR) studies. Indicate whether the results of each study support, reject,
or are i
ActSc 372 Spring 2012 Lysa Porth
Quiz 3
Student Name: _
Student Number: _
1.
While difficult to determine exactly, studies that have examined the direct costs of
financial distress put an estimate in the rate of _ of the firms market value.
A. 1% to 3%
B.
University of Waterloo
Department of Statistics and Actuarial Science
ActSc 372: Corporate Finance II (Spring 2012)
General Information
Instructor: Lysa Porth, M3 3128, ext. 31543, [email protected]
Instructor Office Hours: W F 12:20-1:20
Lecture Time:
ActSc 372 Spring 2012
CHAPTER 10
Risk and Return:
Lessons from Market
History
1
CHAPTER OUTLINE
Returns
Holding-Period Returns
Return Statistics
Risk Statistics
Risk Premium
Summary and Conclusions
2
RETURNS
Dollar Returns
=Dividend + Change in Market Val
NAME: LIN LIN ZHANG
Student ID: 20385244
Actsc 372
1. What is Shillers main argument against the EMH? How does Malkiel deal with
Shillers main argument?
Shiller is supporting the Behavioral Finance, which indicates that economic
decisions are affected by