Given a Sharpe ratio for the market portfolio of 0.40, calcu…

Given a Sharpe ratio for the market portfolio of 0.40, calculate the expected return on a stock with a standard deviation of returns of 0.50 and a correlation with the market portfolio returns of 0.6. The risk-free rate is 5% and the standard deviation of the market portfolio returns is 0.25.

Shares of Lakewood, Inc. are currently selling for $52.63. Y…

Shares of Lakewood, Inc. are currently selling for $52.63. You believe the stock will decline in price ranging from $30 to $32 in the next few months. Which of the following strategies will allow you to profit if your prediction is correct?I.short the stockII.buy a call at 50III.write a call at 55IV.buy a put at 45

Exploración cultural. WhatsApp. Read this paragraph about Wh…

Exploración cultural. WhatsApp. Read this paragraph about WhatsApp. Then indicate if each statement is Cierto (true) o Falso (false). (5×2=10) á é í ó ú ñ Para comprender cómo (how) está cambiando nuestro modo de comunicarnos, es esencial entender (understand) la revolución tecnológica que ocurre ahora. Una investigación realizada en España ha revelado que la extensión del uso del Smartphone básicamente ha garantizado el éxito de aplicaciones de mensajería instantánea como WhatsApp. De hecho (In fact), esta aplicación es el modo principal por el cual los jóvenes (young people) universitarios se comunican entre sí porque opinan que WhatsApp es más personal y que les ofrece más control. Algunos investigadores especulan que WhatsApp y otras aplicaciones similares son nuestro futuro porque piensan que esos jóvenes universitarios van a usarlas por el resto de su vida. 1. El informe (report) es de España. C/F 2. En España, la aplicación WhatsApp no es popular. C/F 3. Los jóvenes universitarios usan mucho WhatsApp. C/F 4. El informe dice (says) que aplicaciones como WhatsApp son el futuro. C/F 5. Según el informe, los jóvenen van a usar WhatsApp por el resto de su vida (for the rest of their lives). C/F

Consider an US-based foundation with spending rate of 3 perc…

Consider an US-based foundation with spending rate of 3 percent and cost of earning investment returns has averaged 50 basis points annually. The asset allocation and the set of capital market expectations are shown below.  The expected long-term inflation rate is 2.5 percent. Table 3 Capital Market Expectations Asset class E(ri) si Correlations A B C D A US equities 9% 18% 1       B Ex-US equities 8 14 0.60 1     C US bonds 4 8 0.30 0.20 1   D Real estate 1 7 0.50 0.40 0.10 1    Table 4 Corner portfolios Portfolio E(rp) sp Sp wi A B C D 1 9.0% 18.0% 0.39 100% 0% 0% 0% 2 7.9 16.7 0.35 65 35 0 0 3 7.5 15.4 0.38 37 53 0 10 4 5.0 12.4 0.36 0 25 43 32 5 4.6 10.1 0.32 0 11 55 34 Between which two corner portfolios will be situated the strategic asset allocation that satisfies the foundation return requirement?