1. Calculate the geometric and arithmetic average total return, variances and covariances for the following securities, Daily covariance matrix 168% Apple Apple Boeing Exxon GE WMT Return Daily arithmetic average Daily geometric average Expected annual re
Problem Set 2 Answer Key Econ 233 BKM 9: CFA 12 (31 in 7th edition) 12. a. Expected Return Stock X Stock Y b. i. 5% + 0.8(14% 5%) = 12.2% 5% + 1.5(14% 5%) = 18.5% Alpha 14.0% 12.2% = 1.8% 17.0% 18.5% = 1.5%
Kay should recommend Stock X because of its posi
Econ 233 Problem Set Answer key
Problem Set 3
1. BKM 18: 14 (25 in 7th edition) Year 0 1 2 3 4 D t (end of year) $1.0000 $1.2500 $1.5625 $1.953125 $2.05078 g (during year) 25.0% 25.0% 25.0% 5.0% a. The dividend to be paid at the end of year 3 is the first
Name: _ Econ 233 Sample Final Exam To get full credit, please show all calculations 1. (10 points) Today, Trident Inc. reported annual earnings per share (EPS) of $4 per share, and paid out annual dividends of $1 per share. The yields on 1-year Treasury b