Share
Explore BrainMass

Finance

Calculating the Variance and Standard Deviation

Question: A portfolio is made up of 75% of stock 1, and 25% of stock 2. Stock 1 has a variance of .08, and stock 2 has a variance of .035. The covariance between the stocks is -.001. Calculate both the variance and the standard deviation of the portfolio.

Multiple Choice Questions MBA Finance

1. Which of the following might be attributed to efficient inventory management? a. High inventory turnover ratio. b. Low incidence of production schedule disruptions. c. High total assets turnover. d. Statements a and c are correct. e. All of the statements above are correct. 2. Which of the following statements is

Standard deviation, covariance, rule 5 of portfolio

Reconsider the Best Candy and Sugar Beet stock market hedging. Assume that the probability distribution of the rate of return on Best Candy stock is unchanged but for Sugar Beet stock, it becomes the following: See attached document for data a) If Humanex's portfolio is half Best Candy stock and half Sugar Beet, what ar

Operations research questions, dual price, maximize the total profit contribution

Supersport Footballs, Inc., has to determine the best number of All-Pro (A), College (C), and High School (H) models of footballs to produce in order to maximize profits. Constraints include production capacity limitations (time available in minutes) in each of three departments (cutting and dyeing, sewing, and inspection and pa

Operations research questions, optimal solution, revised costs

To provide additional practice in formulating and interpreting the computer solution for linear programs involving more than two decision variables, we consider a minimization problem involving three decision variables. Bluegrass Farms, located in Lexington, Kentucky, has been experimenting with a special diet for its racehorses

Finance Maturity Bonds

(See attached file for full problem description) --- HOMEWORK CHAPTER 7 1- Use the WSJ listing to answer the following questions: Maturity Ask Rate Mo/Yr Bid Asked Yield 6.300 April 25 108:07 108:08 ----- 4.625 April 17 90:17 90:18 ----- 10.55 Apr

What is the stock price?

CK's earnings and dividends will grow at .5% monthly for the next 5 years. After that the growth will stop. For year 6 and afterward, it will pay out all earnings as dividends. Next years EPS is $10 and the dividends is $5 and the market capitalizes rate is 9%. How can I determine what CK's stock price is?

Discussion Board Question

Bob Brown was recently involved in a minor auto accident. His car was hit from behind, and he, in turn, slammed into the car in front of him. He would like someone to explain his coverage and show him where, in his auto policy, each of his losses might be covered. The explanation of coverage and the location of coverage should b

Finance Discussion Questions

There was an upward trend in the ratio of the book value of debt to the book value of debt and equity throughout the 1990s. Some of this was due to the repurchasing of stock. The market value ratio of debt to debt and equity exhibited no upward trend. This can be explained by ? 1. the change in the accounting rules of the pe

Financing healthcare

Consider the notion of cost containment. How has Healthcare Providers addressed issues of cost control. Include a discussion of how technology has played, and will continue to play, a role in cost control. What do you believe will be the long-term impact of these cost-control efforts.

Treasury auction

In a treasury auction of $2.5 billion par value 91 day Tbills, the following bids were submitted: bidder Bid amount Price 1 500 mill $.9940 2 750 mill $.9901 3 1.5 bill $.9925 4 1 bill $.9936 5 600 mill $.99

Business

Why does personal growth and development seem more urgent today than they were in the past? Where should I look for the resources to support personal growth and development? What are the barriers to personal growth and development? What are salary differences of degreed vs. non-degreed.

Discussion problem

If you have $10 today, you can invest that $10 and earn interest. If, for example, you earn 5% interest, you will earn $0.50 interest and have a total of $10.50 at the end of one year. If you invest the $10.50 for another year, you will earn $0.53 interest and have a total of $11.03 at the end of the second year. In year two, yo

Financing Healthcare

What are the three most significant challenges facing the healthcare system due to changes in financial mechanisms? Has managed care influenced or changed the ways in which healthcare providers make medical decisions? Why or Why not? How is managed care likely to impact the long-term supply of the healthcare providers in t

Break-even point

I need to determine what is meant by the term break-even point in regards to Managerial Accounting? I also need to name 3 approaches to break-even analysis and explain how each approach works.

Finance Discussion Questions

1. Some believe that equity financing (common stock) aside from dividend payments is free financing for the company. Do you agree? Why? 2. What is beta and why is it important? 3. Leverage - Operating and Financial - how are the two different? And how are they similar? 4. Should dividend payments be tax dedu

Stocks

A. What type of stock would an investor purchase if he or she were primarily interested in a safe investment? B. What do stockholders look for when reviewing and analyzing the income statement?

What is the annual effective rate earned on the investments portfolio? 2. What rate of return would have been calculated if one only looked at the ending portfolio value as compared with the beginning investment?

A Firm invests $1,000,000 at the beginning of the year. It adds another $250,000 at the end of the first quarter, withdraws $350,000 at the end of the second quarter, adds $145,000 at the end of the third quarter, and withdraws $450,000 of the remaining funds at the end of the year. It earns $20,000 of interest in the first qua

Canbide- Numbers

Task - After gathering the needed data to your Individual Project for the previous task you have sub-contracted with a transportation management company to actually perform the analysis. This company will provide an unbiased, numbers based, recommendation of whether or not to proceed with the project. Should Canbide proceed

Single Dollar Available Projects

1. Is a single dollar worth more today or a year from now? Why? 2. I have two available projects in which I can invest. Project A has three possible (equally likely returns on investment (10%), 15%, and 55%. Project B similarly has three returns (also equally likely) of 15%, 20%, and 25%. The average return on these i