The Bloomberg screen below shows the Nasdaq Index price over the last year. Describe the technical indicator used from the chartist and what trade signal it may suggest.
Q: when is a good time to invest in straight bon
A: Bond are type of debt instruments that are used to raise the money from market and only interest is…
Q: .Ran Company wants to determine its cost of common stock equity using the CAPM. The company's…
A: The CAPM refers to the Capital Asset Pricing Model. The model describes the relationship between…
Q: 5. explain what the benefits of escrow for both the borrower and the lender may be? Do disadvantages…
A: When you make big investment or purchase property in the market than there is need of third party…
Q: BIDV can borrow either AUD10 million or $5 million. The current spot rate of the AUD is $0.48 and…
A: There is lot of volatility in exchange rate and due to this the exchange rate goes up and down in…
Q: Hello! Please help me with as much of this as you can. Thank you! Present Value of an Annuity of $1…
A: Net Present Value = Present Value of Cash Inflows - Initial Investment Cash Payback = Initial…
Q: ou just purchased a parcel of land for $54,000. To earn a 11% annual rate of return on your…
A: FV = PV * (1 + r)^nWhere FV = Future ValuePV = Present Value of Land = $54,000r = rate of interest =…
Q: ni is a self-manufactured, he wants to calculate how much the price for their new product if the…
A: The price to be charged to customer depends on the production cost and logistic cost and transport…
Q: What is the net present value of this project?
A: Information Provided: Fixed cost = $157,000 Annual sales = $98,000 Variable cost = $27,400 Fixed…
Q: PLEASE, PERFORM THE EXERCISE IN EXCEL AND SHOW THE FORMULAS 2. - Calculate the annual interest rate…
A: Promissory note: The parameters of the debt, including the interest rate, principal amount, date,…
Q: The down payment or equity needed for this investment is $60,000 (outflow) Cash Flow $15,000 5,000…
A: MIRR: By assuming that profits are reinvested at the company's cost of capital and that cash…
Q: At what per annum rate must $232 be compounded monthly for it to grow to $617 in 10 years?
A: EXCEL FORMULA:
Q: hich explanation BEST describes John Maynard Keynes' "The Para Individuals should reduce spending to…
A: Paradox of thrift explain about the nature of humans during the period of economic recession and how…
Q: Calculate the present value PV (in dollars) of an investment that will be worth $1,000 at the stated…
A: To calculate the present value we will use the below formula Present value = FV/(1-d)n Where FV -…
Q: ou have located a warehouse property to purchase at a price of $320,000. You plan to make a 20%…
A: Balloon payments are one time lump sump payments paid at the end of period to settle the loan…
Q: Quick Flick is considering two investments. Both require a net investment of $120,000 and have the…
A: EXCEL FORMULA:
Q: ur company has just signed a three-year nonrenewable contract with the city of New Orleans for…
A: Uniform annual equivalent concepts are used in heavy equipment used in the construction because the…
Q: how about the solution of part D?
A: Here, Beta of stock = 1.35 Beta of risk-free asset = 0 Expected return of stock = 16% Risk-free…
Q: explain the effect of additional debt on the weighted average cost of capital (WACC)?
A: When the company takes on additional date in its capital structure then it increases the risk of…
Q: Rogoff Co.'s 15-year bonds have an annual coupon rate of 9.5%. Each bond has face value of $1,000…
A: Bonds are debt instruments issued by a company. The company that issues the bond pays a periodic…
Q: You invested a total of $10,400 in shares of the three stocks at the given prices, and expected to…
A: This question can be solved using Guassian elimination method.
Q: SML and WACC [LO1] An all-equity firm is considering the following projects: Project W X Y Z Beta…
A: CAPM or Capital Asset Pricing Model is the formula that represents the relationship between the…
Q: us compound interest with QUARTERLY compounding at a rate of 6% APR. We set a goal of saving up…
A: Annuity It is a series of equal periodic payment at equal interval over a specified period. In…
Q: Finance Which one of the following statements is not correct? a) Market timing theory argues that…
A: The wrong statement is b) According to static trade-off theory agency costs of equity increase when…
Q: If Rita receives $36.44 interest for a deposit earning 6% simple interest for 10 days, what is the…
A: To calculate the deposit amount we will use the below formula Deposit amount = I/(r*d/365) Where I…
Q: Assume that 1 unit of Currency Y costs 0.49 units of Currency X, 1 unit of Currency Z costs 7.99…
A: Cross exchange rates Cross exchange rates are used to determine the true exchange rate between…
Q: Question 1 When pricing an American security in the binomial model, which of the following best…
A: Since you have asked multiple question, we will solve the first question for you. If you want any…
Q: ATZ (US Company) expects to receive a 19 million euros in 90 days from a Australia customer. The…
A: ATZ home currency is USD. It will receive AUD 19M in 90 days from an Australian Customer. If ATZ…
Q: Evaluate the failure of intermediaries to rectify the behaviour to reduce the effects of the crisis…
A: Financial intermediaries refer to the procedure that channels funds for the third parties who are…
Q: An automobile manufacturer is consid will save $7,500,000 per year in manua salvage value at the end…
A: IRR is internal rate of return is the discount rate at which present value of savings from equipment…
Q: Colin is analyzing a 3-year project that has an initial cost of $199,800. This cost will be…
A: Average accounting rate of return is calculated with the formula belowARR = Average Net…
Q: Why is depreciation and interest expense in the excel 300,000 if it states its 3 million?
A: 3 million = 3,000,000
Q: Your investment club has only two stocks in its portfolio. $50,000 is invested in a stock with a…
A: The portfolio beta represents the beta of the whole portfolio. the portfolio beta is the sum of the…
Q: Caspian Sea Drinks is considering the production of a diet drink. The expansion of the plant and the…
A: The internal rate of return is defined as the discount rate at which the project's return equals the…
Q: The company expects cash collections during the year of P250,000. In addition, it expects P25,000 in…
A: Cash flows are a source of liquidity for the company and increasing cash flows will increase the…
Q: Johnson, the CFO of Homer Industries, Inc is trying to determine the Weighted Cost of Capital (WACC)…
A: Weighted average cost of capital is weighted cost of equity, weighted cost of debt after tax and…
Q: Determine the periodic payments on the given loan or mortgage. HINT [See Example 5.] (Round your…
A: As per the given information: Annual payment rate (APR) = 7% = 0.07 P = $4,000,000 T = 20 years n =…
Q: Compare the monthly payment and total payment for the following pair of $180,000 loan options.…
A: An annuity is a stream of fixed cash flows that occur at regular intervals.The periodic payments on…
Q: Phillamone Berry has a car loan with a company that refunds interest using the rule of 78 when loans…
A: The interest is charged on the outstanding amount. The loan is to be paid over a specified duration…
Q: Which of the following statements is not correct? The higher the sales growth rate g is, the…
A: Additional fund needed is the amount of money a company needs to raise from its external sources to…
Q: The company wants to sell a Php 69,000,000 worth of bonds with a maturity of 25 years. The coupon…
A: Bonds: Bonds are the liabilities for the company that is issued to generate the funds required for…
Q: The financial statements of TVS Motors report the following information (all values are in…
A: The formula to calculate financial leverage is as follows: Financial Leverage = Total…
Q: After four challenging yet fruitful years, you just graduated from college. Your parents gave you…
A: Future Value: The future value is the value of annuity or the sum lump amount after a certain period…
Q: The engineering team at Manuel's Manufacturing, Inc., is planning to purchase an enterprise resource…
A: Solution:- Present worth means the net present value. It means the net present value of benefits…
Q: Suppose the market premium is 12%, market volatility is 20% and the risk-free rate is 6%. Suppose…
A: Expected return E(R) = rf + beta*Risk/market premium Where rf is risk free rate.
Q: Please view the following video before answering this question. Video Example 4.3 Click here to…
A: Present equivalent cost of investment would be equivalent cost based on the time period and interest…
Q: How does pe effect the stock market
A: PE reflects the price to earning ratio. It is the ratio of current market price to the earning for…
Q: A small office building could be purchased for sole use by the corporation at a total price of $5.3…
A: In this question , we would be preparing cashflow statement for the ABC Corporation. Note #…
Q: 1. Evaluate the following. a) Calculate the simple interest earned after investing $1000 at 8%…
A: To calculate the simple interest we will use the below formula Simple interest = P*r*t Where P -…
Q: Your friend waited until her 40th birthday to begin saving for retirement. She places $2,400 per…
A: Future value can be calculated using FV (rate, nper, pmt, [Pv], [type]) Rate The interest rate Nper…
Q: Caspian Sea Drinks is considering the purchase of a new water filtration system produced by Rube…
A: The discount rate where the project’s return is equal to the initial investment is called the…
Step by step
Solved in 2 steps
- The Bloomberg screen below shows the Nasdaq Index price over the last year. Describe the technical indicator used from the chartist and what trade signal it may suggest. CCMP €T On 03 CCMP Index 11/04/2020 Study RSI 1D 3D 1M 6M YTD 1Y 5Y Max Daily Volume 1.000B IRSI (14) on Close (CCMP) 75.3572 Nov C 15811.58 +161.98 Nov 0 15658.52 H 15821.58 L 15616.44 Prev 15811.58 94) Suggested Charts 96) Actions 97) Edit 11/04/2021 Last Px Local CCY Mov Avgs Period 14 Overbought 70 Oversold 30 1 Table + Compare ▾ Add Data Track Annotate News Zoom Key Events 2020 Dec Jan Feb Mar Apr May Jun 06/03/21 Jul Aug Relative Strength Index ไปได้ Sep Edit Chart * Oct 15811.5801 15013.0596 14198.1699 Last Price THigh on 11/03/21 Average 15811.5801 15821.5801 12000 13839.5049 Z-VOU 1 Low on 11/04/20 11394.21 11075.4473 ISMAVG (50) on Close 15013.0596 SMAVG (100) on Close 14805.082 SMAVG (200) on Close 14198.1699 13000 10000 3B 2B 1.000B -0 100 75.3572 -50 -0The following table lists the closing levels of the S&P 500 Index and the share price of Amazon stock. Year 2017 2018 2019 2020 2021 Relative Return S&P 500 Index 2043.94 % 2238.83 2673.61 2506.85 3230.78 AMZNt AMZNt-1 What was the lowest annual return to two decimal points. The annual return of AMZN relative to the S&P 500 Index can be expressed using the formula: AMZN S&P 500 t S&P 500 t-1 675.89 768.66 1169.47 1501.97 1847.84 AMZN relative to the S&P 500 Index from 2018 to 2021? Round your answerThe following are monthly percentage price changes for three market indexes Month DJIA S&P 500 Nasdaq 1 0.02 0.03 0.05 2 0.07 0.07 0.23 -0.02 -0.02 -0.05 0.01 0.0 0.05 5 0.05 0.05 0.13 6-0.06 -0.04 -0.06 What is the covariance between the rates of return for S&P 500 and Nasdaq? 4 Oa. 0.0041 The following are monthly percentage price changes for three market indexes Month DJIA S&P 500 Nasdaq 1 0.02 0.05 0.07 0.2 -0.02 -0.05 0.01 0.05 5 0.05 0.13 6 -0.06 -0.06 What is the covariance between the rates of return for S&P 500 and Nasdaq? 2 3 4 a 0.0041 0.03 0.07 -0.02 0.03 0.05 -0.04
- Consider the following table of annual rates of return, in percentage, for four common risky assets over the time period 2010 to 2019 • Berkshire Hathaway (ticker: BRK/A) • S&P 500 Index (ticker: SPX) • NASDAQ 100 Index (ticker: NDX) • Russell 2000 Index (ticker: RUT) YEAR BRK/A SPX NDX RUT 2010 21.4 15.1 19.22 26.85 2011 -4.7 2.1 2.7 -4.18 2012 16.8 16 16.82 16.35 2013 32.7 32.4 34.99 38.82 2014 27 13.7 17.94 4.89 2015 -12.5 1.4 8.43 -4.41 2016 23.4 12 5.89 21.31 2017 21.9 21.8 31.52 14.65 2018 2.8 -4.4 -1.04 -11.01 2019 11 31.5 37.96 25.52 Now assume there is a risk-free asset available and the annual risk-free rate is 2%. Using mean-variance portfolio theory, determine the 4 portfolio weightings and the portfolio variance for the unique fund F defined by the tangent portfolio and the one-fund theorem. Note that the portfolio weights sum to 1 and short selling (negative weights) are permissible.Q9 to Q10 below is based on the following information.Current Stock Price (S0) 80Strike/Exercise Price (K) 75Time to Maturity (T) of 1 year 1Risk-free Rate (r) 0.04Volatility 40%N(d1) 0.6777N(d2) 0.5245N(d1) 0.3223N(d2) 0.4755 Q9. Based on the above information and the Black-Scholes-Merton model, which of thefollowing is the correct Delta () of the European Put option?(A) 0.6777 (positive)(B) 0.5245 (positive)(C) -0.6777 (negative)(D) -0.3223 (negative)Answer: _______________ Q10. Based on the above information and the Black-Scholes-Merton model, which ofthe following is closest to the correct no-arbitrage Put Option price?(A) 8.4852(B) 16.4259(C) 11.3392(D) -16.4259Answer: _______________A market-cap weighted index includes the below three stock, where the value at the beginning of the year was 100 point. What will be the value of the index at the end of the year a) 44.3 b) 110.6 c) 93.8
- A)The following are monthly percentage price changes for four market indexes. Month DJIA S&P 500 Russell 2000 Nikkei 1 0.03 0.02 0.04 0.04 2 0.07 0.06 0.10 −0.02 3 −0.02 −0.01 −0.04 0.07 4 0.01 0.03 0.03 0.02 5 0.05 0.04 0.11 0.02 6 −0.06 −0.04 −0.08 0.06 Compute the following. a. Average monthly rate of…Stocks A and B have the following historical returns:YearStock A's Returns, raStock B's Returns, ra2016(18.60%)(14.50%)201734.2520.40201814.7539.902019(1.00)(9.70)202026.7520.05a. Calculate the average rate of return for each stock during the period 2016 through 2020. Round your answers to two decimal places.Stock A:11.23%Stock B:11.23%b. Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would the realized rate of return on the portfolio have been each year? Round your answers to two decimal places. Negative values should be indicated by a minus sign.YearPortfolio2016-16.55%201727.33201827.33%2019-5.35202023.40What would the average return on the portfolio have been during this period? Round your answer to two decimal places.11.23c. Calculate the standard deviation of returns for each stock and for the portfolio. Round your answers to two decimal places.Stock AStock BPortfolioStandard Deviationd. Calculate the coefficient of variation for each…A price weighted stock index has stocks AAC, BZF, and CHO in it. It is at 550 on 21-Oct-2019. CHO is replaced at the end of day trading on 22-Oct-2019 with DIY. What is the value of the index on 22-Oct-2019 (take the answer to 2 decimal places)? AAC BZF CHO DIY 21-Oct-19 $75.00 $150.00 $10.00 $106.00 22-Oct-19 $80.00 $140.00 $12.00 $107.00 23-Oct-19 $82.00 $135.00 $8.00 $104.00 Shares Outstanding (in thousands) 1,000 800 50,000 8,000
- You’ve collected the following information from your favorite financial website. 52-Week Price Stock (Div)Div Yld %PE Ratio Close PriceNet ChgHiLo77.40 10.43 Palm Coal 0.362.6 6 13.90 –0.24 55.81 33.42 Lake Lead Grp 1.543.8 10 40.43 –0.01 131.08 70.25 SIR 2.753.1 10 89.12 3.07 50.24 13.95 DR Dime 0.805.2 6 15.43 –0.26 35.00 20.74 Candy Galore 0.321.5 28 ?? 0.18 According to your research, the growth rate in dividends for SIR for the next five years is expected to be 21 percent. Suppose SIR meets this growth rate in dividends for the next five years and then the dividend growth rate falls to 5.75 percent indefinitely. Assume investors require a return of 15 percent on SIR stock. Requirement 1:According to the dividend growth model, what should the stock price be today? (Do not round intermediate calculations. Round your…Amazon.com Incorporated reported the following stock price at the beginning of each year since 2012. Using 2012 as the base year, develop a simple index for stock prices. Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Year 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 Stock Price to Open Year $175.89 256.08 398.80 312.58 656.29 757.92 Click here for the Excel Data File What is the percentage increase in price over the 10-year period? Note: Round your answers to 2 decimal places. 1,172.00 1,465.20 1,875.00 3,270.00 Base 2012Questions The table shows the value of the FTSE 100 share index over 6-month periods for 2 years. Value (£) 7,147 7,455 7,692 7,668 7,154 Month January 2017 July 2017 January 2018 July 2018 January 2019 If the value of shares held in the FTSE 100 was £2,450 in July 2017, what would it be in July 2018? O O 0 £2 O £2,553 O £2,560 £2,478 £2,505 £2,520 Next »
