1. The iniital investment is $1,500. NPC has the opportunity to
invest in a project that has a 75% chance of generating
$500 per year for 7-years under good conditions or a 25%
chance of generating $25 per year for 7-years. Assuming
that all cash flows ar
List of Stocks in the S&P 500 Index on September 20, 2014:
Ticker No. Ticker Symbol Company
21st Century Fox
1 FOXA
3M Co
2 MMM
ACE Limited
3 ACE
AES Corp
4 AES
AFLAC Inc
5 AFL
AGL Resources
6 GAS
AT&T Inc
7T
AbbVie Inc.
8 ABBV
Abbott Laboratories
9 ABT
A
Question #1: Capital Allocation:
Consider the following capital market: a risk-free asset yielding 1.50% per
year and a mutual fund consisting of 75% stocks and 25% bonds. The
expected return on stocks is 10.50% per year and the expected return on
bonds i
FIN 5550-EVT or WB1 - Jack De Jong: Quantitative Problem Set #2:
Fall I 2016:
Name:
Answer Key
Problem: Points Questions Your Answers:
Capital Allocation: (50 points)
1 (5)
Exp. Ret.
8.81%
2 (5)
Std. Dev.
26.39%
3 (5)
Std. Dev.
27.07%
(5)
High/Low Higher
Financial Analysts Journal
Volume 72 Number 2
2016 CFA Institute
PERSPECTIVES
Deactivating Active Share
Andrea Frazzini, Jacques Friedman, and Lukasz Pomorski
The authors investigate active share, a measure meant to determine the level of active managemen
Assignment for Course:
FIN 5550 Investments
Submitted to:
Dr. Jack De Jong
Submitted by:
Elvis Amoah
Date of Submission:
10/16/2016
Title of Assignment:
Project 2
CERTIFICATION OF AUTHORSHIP:
I certify that I am the author of this paper and
that any assis
Nova Southeastern University
Wayne Huizenga Graduate School
of Business & Entrepreneurship
Assignment for Course:
Investment Principles and Policies FIN 5550
Submitted to:
Dr. Jack De Jong
Submitted by:
Elvis Amoah
Date of Submission:
10/2/2016
Title of A
FIN 5550 - Jack De Jong: Quantitative Problem Set #1:
Fall I 2016:
Name:
Answer Key
Problem:
Points Questions Your Answers:
Period 0
Period 1
Period 2
(4)
PWI
$
32.67 $
39.67 $
47.39
(4)
Divisor
3.0000
3.0000
1.9412
(2)
Change? Yes
(2)
Why?
Stock C split
QUESTION2
1.
Question #2: Markowitz Optimization:
Open the associated Excel file named QPS2 Data Fall I 2016 Problem 2 in My
Course Content: Problem Set Spreadsheets. The data file includes 60 months
of returns for 11 exchange traded funds; their names an
2.A).
A lot = 100 shares.
Current price per share = $22.
Total Amount required = $22 x 100 = $2,200.
2.A.1).
Initial Margin is 50%, which means you only need 50% x $2,200 = $1,100 to buy a lot.
You should buy a lot if you think the price will go up.
Margi
FIN 5550 -Online - Jack De Jong: Chapters 4 & 5:
Quiz #3: September 12, 2016 WB1
1.
You purchased shares of a mutual fund at a price of $31.75 per share at the beginning of the year and paid a
front-end load of Varies%. If the securities in which the fund
FIN 5550 - WB2 - Jack De Jong: Quantitative Problem Set #1:
Due: Monday, September 12, 2016 by 11:59 PM:
Name:
ELVIS AMOAH
Problem:
Points Questions Your Answers:
Period 0
Period 1
Period 2
(4)
PWI
$74.00
$74.67
$71.33
(4)
Divisor
3.00
3.00
3.00
(2)
Chang
FIN 5550 - Jack De Jong: Quantitative Problem Set #1:
Fall I 2016:
Name:
Answer Key
Problem:
Points Questions Your Answers:
Period 0
Period 1
Period 2
(4)
PWI
$
32.67 $
39.67 $
47.39
(4)
Divisor
3.0000
3.0000
1.9412
(2)
Change? Yes
(2)
Why?
Stock C split
FIN 5550 - Jack De Jong: Chapter 6: Risk Aversion and Capital Allocation to Risky Assets:
Quiz #4: September 19, 2016 WB1
1.
You invest $100,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an
expected rate of return o
FIN 5550 - Jack De Jong: Chapter 9: The Capital Asset Pricing Model:
Quiz #7: October 10, 2016 WB1
1.
Security A has an expected rate of return of 15.25% and a beta of Varies. The riskfree rate is 2.50% and the
market risk premium is 6.50%. What is the al
FIN 5550-WB1: Jack De Jong: Quantitative Problem Set #2:
Due: Monday, September 26, 2016 by 11:59 PM:
Name:
Problem: Points Questions Your Answers:
Capital Allocation: (50 points)
1 (5)
Exp. Ret.
8.81%
2 (5)
Std. Dev.
19.89%
3 (5)
Std. Dev.
27.06%
(5)
Hig
FIN 5550 - Online - Jack De Jong: Chapters 2 and 3:
Quiz #2: September 6, 2016
1.
2.
Version A
A bond investor is considering two 10 year maturity bonds both rated AA: the municipal bond is yielding
1.55% and the corporate bond is yielding 2.65%. At what
FIN 5620 - Jack De Jong: Chapter 6: Risk Aversion and Capital Allocation to Risky Assets:
Example #1:
a. Suppose you forecast that the standard deviation of the market return will
be 20% in the coming year. If A = 4, what would be a reasonable guess for
t
Question 1
1 out of 1 points
You purchased shares of a mutual fund at a price of $36.75 per
share at the beginning of the year and paid a front-end load of
6.5%. If the securities in which the fund invested increased in
value by 10.5% during the year, an
Question 1
1 out of 1 points
You invest $100,000 in a complete portfolio. The complete portfolio is
composed of a risky asset with an expected rate of return of 12% and a
standard deviation of 35% and a treasury bill with a rate of return of 3.0%.
How mu
Question 1
1 out of 1 points
You put 70% of your money in a stock portfolio that has an
expected return of 11.75% and a standard deviation of 28%. You
put the rest of you money in a risky bond portfolio that has an
expected return of 2.65% and a standard
Question 1
2 out of 2 points
A statistic that measures how the returns of two risky assets move
together is:
Selected
Answer:
Correct
Answer:
Response
Feedback
:
C and
D.
C and
D.
Covariance measures whether security returns move
together or in oppositio
Question 1
0 out of 2 points
The means by which individuals hold their claims on real assets in a
well-developed economy are
Selected
Answer:
Correct
Answer:
Response
Feedback:
Exchange-driven
assets.
Financial assets.
Financial assets allocate the wealt
Question 1
2 out of 2 points
As the number of securities in a portfolio is increased, what happens to the average
portfolio standard deviation?
Selected Answer:
Correct It decreases at a decreasing rate.
Correct Answer:
Correct It decreases at a decreasin
Question#1
Cost of capital
Initial investment
Good Condition
Bad Condition
Probability
Year
Good Condition
0
1
2
3
4
5
6
7
10%
1500
75%
25%
Investment Returns
Bad Condition
Pv of returns
$
-1500
500
500
500
500
500
500
500
2,434.21 $
NPV of returns (Prese
QUESTION 1
You put 75% of your money in a stock portfolio that has an expected return o
put the rest of you money in a risky bond portfolio that has an expected retu
The stock and bond portfolio have a correlation 0.35. What is the standard d
answer round
FIN 5550 -Online - Jack De Jong: Chapters 4 & 5:
Quiz #3: September 14, 2015 WB2
1.
A noload mutual fund had NAV per share of $Varies on January 1. On December 31 of the same year the
fund's NAV was $25.32. Income distributions were $0.85 and the fund had
false
Question 1
1 out of 1 points
A bond investor is considering two 10 year maturity bonds both rated AAA: the municipal
bond is yielding 1.35% and the corporate bond is yielding 2.10%. At what marginal tax rate
would the bond investor be indifferent be
CHAPTER 4: MUTUAL FUNDS AND
OTHER INVESTMENT COMPANIES
CHAPTER 4: MUTUAL FUNDS AND
OTHER INVESTMENT COMPANIES
PROBLEM SETS
3.
Open-end funds are obligated to redeem investor's shares at net asset value, and thus
must keep cash or cash-equivalent securitie
Chapter 2 - Asset Classes and Financial Instruments
CHAPTER 2: ASSET CLASSES AND FINANCIAL
INSTRUMENTS
PROBLEM SETS
1.
Preferred stock is like long-term debt in that it typically promises a fixed payment
each year. In this way, it is a perpetuity. Preferr
CHAPTER 5: INTRODUCTION TO RISK, RETURN, AND
THE HISTORICAL RECORD
CHAPTER 5: INTRODUCTION TO RISK, RETURN, AND
THE HISTORICAL RECORD
PROBLEM SETS
2.
If we assume that the distribution of returns remains reasonably stable over
the entire history, then a l