MA270 Lab Report 5 - Portfolio Management II
Student Number:
Name:
Lab:
Winter 2015
1. [5 marks] Recall "Take-home assignment 4" where a portfolio containing Shoppers, BMO, and RBC stocks from 2006 was
analyzed. Now consider the data for these stocks in 2
MA270 Report 3 Lab Notes
Bonds:
A written contract between the issuer (borrower) and the investor (lender) which promises to pay a stated amount (or
amounts) of money at some future date (or dates). Lender is paid interest (coupons) on investment througho
MA270 Lab Report 2 - Yield Rates; Zero-Coupon Bonds
Student Number:
Name:
Lab:
Winter 2015
1. [15 marks] A 20-year, $100 000 is purchased on January 1st, 2015. It is redeemable at par and pays quarterly coupons at
c(4) = 4%:
(a) If the bond is priced to y
MA270 Lab Report 1 - Annuities; Bonds
Student Number:
Name:
Lab:
Winter 2015
1. [? marks] Suppose that you purchased a house for $400000 on January 1st, 2015. The mortgage on the home requires monthly
payments of $3950 for 10 years, a balloon payment at t
MA270 Lab Report 3 - Duration of Bonds; Utility Functions
Student Number:
Name:
Lab:
Winter 2015
1. [14 marks] Recall the following ve Government of Canada bonds (each with a face value of $100 that paid coupons semiannually) from Lab Report 2 that were p
MA270 Lab Report 4 Notes
Portfolios of Two Assets:
Previously we discussed the amount of "wealth" that should be invested in a single asset. Now, we will look at a
"portfolio" consisting of two assets and the percentages (weights) w1 = w and w2 = 1 w of a
MA270 Lab Report 6 Notes
Option Contracts:
When a forward contract is issued, the agreement must be fullled at the delivery time T: For an option contract, the
agreement does not need to be fullled. It just gives the holder of the option the right to trad
MA270 Lab Report 5 Notes - Portfolio Managment II
Portfolios of n Assets:
1. Notation: For 1
i
n;
Rn ]T is the return vector where Ri is the return on asset i:
(a) R = [R1 R2
(b) m = [
(c)
i
(d)
ij
=
1
T
n]
2
is the expected return vector where
= E[Ri ] i
MA270 Lab Report 4 - Portfolio Management I
Name:
Student Number:
Lab:
Winter 2015
Note: Before you get started, please be aware that every question on the assignment pertains to the portfolio described below. Use
the information given to answer the quest
MA270 Lab Report 6 - Options
Name:
Student Number:
Lab:
Winter 2015
1. [14 marks] Recall "Take-Home Assignment 6" where the price of one Google stock was $570.19 on March 24th, 2015 and 6
available options (on nance.yahoo.com) that expired on January 24th
MA270 Lab Report 1 Notes
Annuities
1. Notation:
(a) C - Periodic payments
(b) n - The number of compounding periods over the term of the annuity.
(c) i - annual interest (compounded annually)
(d) i(m) - interest compounded m times per year
i(m)
is interes
MA270 Lab Report 3 Notes
Bonds:
A written contract between the issuer (borrower) and the investor (lender) which promises to pay a stated amount (or
amounts) of money at some future date (or dates). Lender is paid interest (coupons) on investment througho
MA240 Week 11 Report Functions of Random Variables Continued
Name:
Student Number:
Lab:
Fall 2012
1. [10 marks] Let X1 ; X2 ; X3 be three independent random variables with the following distributions:
X1 is a Poisson random variable, with
1
=3
X2 is a Bin
MA270 Week 10 Report Portfolio Management II
Name:
Student Number:
Lab:
Winter 2013
Throughout this lab assignment, a number of calculations will be completed using Maple and the
with(LinearAlgebra): package. Maple may be used as a tool to assist with cal
MA270 Week 9 Report Portfolio Management
Name:
Student Number:
Lab:
Winter 2013
1. [15 marks] An investor has a portfolio of two risky assets. The following table shows three scenarios and the
probability of each occurring along with the returns on each a
MA270 Week 7 Report Portfolio Management I
Name:
Student Number:
Lab:
Winter 2013
1. [10 marks] Which of the following functions satisfy the conditions to be a utility function for x > 0? If the
function satises the conditions, justify your answer. If not
MA270 Week 5 Report - Bonds
Name:
Student Number:
Lab:
Winter 2013
1. [10 marks] Markham city council recently approved the building of a $325 million arena. Suppose that in order
to pay for a portion of the arena, the city issues 20-year bonds with semi-
MA270 Week 3 Report - Annuities
Name:
Student Number:
Lab:
Winter 2013
1. [4 marks] Starting 3 months from now, suppose that Catherine deposited C dollars every 3 months for 3 years.
At that point, she continued making quarterly deposits of 2C dollars (st
MA270 Week 1 Report Probability Review
Name:
Student Number:
Lab:
Winter 2013
1. [1 mark] Suppose that when ipping a "loaded" coin the probability that a heads comes up is P (Heads) = 0:3.
Determine P (T ails), the probability that a tails is ipped.
P (T
MA270 Week 3 Lab Notes
Bonds:
A written contract between the issuer (borrower) and the investor (lender) which promises to pay a stated amount (or
amounts) of money at some future date (or dates). Lender is paid interest (coupons) on investment throughout
MA270 Week 2 Lab Notes
Bonds:
A written contract between the issuer (borrower) and the investor (lender) which promises to pay a stated amount (or
amounts) of money at some future date (or dates). Lender is paid interest (coupons) on investment throughout
MA270 Week 2 Report Simple and Compound Interest
Name:
Student Number:
Lab:
Winter 2013
1. [5 marks] Changing his ways, Captain Jack Sparrow purchases a 3 month treasury bill (instead of searching the
seas for hidden treasure) yielding a 6:45% rate of int