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Calculate the expected return and standard deviation of this portfolio.

The U.S. market has an expected return of 12% and a standard deviation of 22%. An index mutual fund that matches the Morgan Stanley Europe, Australia, and Far East Index (EAFE) has an expected return of 14% and a standard deviation of 30%. The U.S. market and the EAFE fund have a correlation coefficient of 0.5%. Kramer was con

Country Risk Assessment for Iran for the current year

You are working for McDonalds Corporation. You want to do a Country Risk Assessment for Iran for the current year to decide whether you should operate a Franchise there. Explain how you would proceed? What data would you need; How would you use them?

Finance Question-The commando motorcycle company

The commando motorcycle company has decided to become decentralized and split it's operations into two divisions. Motor and Assembly.Both divisions will be treated as investment centers. The motor division is currently operating at it's capacity of 30,000 motors per year Direct Materials = $30 Direct Labor = 50 Variable Ma

Finance Problem-Niesen Corporation

Niesen Corporation has two major business segments-consumer and commercial. Data for the segment and for the company for August appear below: Sales Revenues, consumer = $690,000 Sales Revenues, Commercial = $310,000 Variable Expenses, consumer = $290,000 Variable expenses, commercial = $164,000 Traceable fixed expenses,

Finance- The Litton Company

The Litton Company has established Standards as follows: Direct Material: 3 pounds per unit @ $4 per pound = $12 per unit Direct Labor: 2 hours per unit at $8 per hour = $16 per unit Variable Manufacturing Overhead: 2 hours per unit @$5 per hour = $10 per unit Units Produced = 600 units Direct Material Used = 2000 poun

MooreHouse Clinic Expenses

MooreHouse Clinic uses client visits as it's measure of activity. During December, the clinic budgeted for 3,700 Client visits, but it's actual level of activity was 3690 client visits. The clinic has provided the following data concerning the formulas used in it's budgeting and it's actual results for December. (see the attac

Most publicly traded companies are analyzed by numerous analysts

Most publicly traded companies are analyzed by numerous analysts. These analysts often don't agree about a company's future prospects. In this exercise you will find analysts' ratings about companies and make comparisons over time and across companies in the same industry. You will also see to what extent the analysts experience

Long-term debt financing

Assume Venture Healthcare sold bonds that have a 10-year maturity, a 12% coupon rate with annual payments, and a $1,000 par value. Suppose that two years after the bonds were issued, the required interest rate fell to 7%. What would be the bonds value? Suppose that two years after the bonds were issued, the required interest rat

Washburn Guitars: Using Break-Even Points

In Washburn's factory, what is the break-even point for the new line of guitars if the retail price is $349? Using Washburn guitars, explain shifting the demand curve versus moving along the demand curve. Discuss the factors that affect the demand for Washburn guitars.

Healthcare finances reimbursement

I would like pros and cons of the following reimburesments: Prospective-payment, Cost-reimbursement, Discounted-charge, Flat-rate reimbursement. How does each of the reimbursement system affect the departments of health care companies and healthcare providers.

Mortgage Loans and Monthly Payments

6) You are taking out a 100,000 mortgage loan to be repaid over 25 years in 300 monthly payments a) if the interest rate is 16% per year what is the amount of the monthly payment? Answer: PMT = 1,358.89 b) if you can afford to pay 1500 per month and need to borrow 100,000 how many months would it take to pay off the mortgage?

The price elasticity of demands

For the product or service that your employer provides to market (or a product offering of your choice from a company of interest), discuss in detail whether you believe the demand for that product or service is relatively elastic or relatively inelastic. What is the price elasticity of demand and what in general determines t

Research design -Gasoline prices

As we have recently experienced, the instability in the price of gasoline has created sudden increases in prices. Mostly these increases are from changes in the supply, but can the gas companies pass all the increases along to the consumer? Some of the gas companies would like to discover or test the elasticity of demand, or at

Corporate Insiders & Outside Investors

Do empirical studies support or reject the notion that corporate insiders earn abnormal profits on their trades? What about outside investors who mimic their trades? What forms of market efficiency, if any, are supported by these studies?

Sensitivity Analysis vs. Scenario Analysis

Explain the difference between sensitivity analysis and scenario analysis. Offer an argument for the proposition that scenario analysis offers a more realistic picture of a project's risk than does sensitivity analysis.

Calculating Retirement Savings

A person plans to retire today and expects to begin living off their retirement savings beginning one year from now and continuing until death. Identify and explain key variables that will influence the amount of income that can be taken from retirement saving annually until death. How will increasing and decreasing these key va

Financial Analysis of Nissan

Provide a summary of financial analysis for Nissan for 2010 and 2011: Current Ratio Quick Ratio Cash Ratio Total Debt Ratio Debt Equity Ratio Times Interest Earned Return on Equity Return on Total Assets Net Profit/Sales Expense/Sales Asset Turnover Price Earnings Ratio

Additional Financing Required - Jones Company

Jones Company sales last year were $25 million and its total assets were $8 million. Accounts payable were $2 million and common stock and retained earnings were $5 million. Jones sales are forecasted to be $30 million this year, earnings after tax are expected to be 3% of sales, and dividends of $250,000 are expected to be paid

Additional Financing Needed With Nonproportionate Increase

ICU has current assets of $800,000 and net fixed assets of $1,400,000. The firm expects its sales to climb 25 percent next year from its current level of $3,500,000. ICU's only current liability is accounts payable of $1,200,000. If both current assets and current liabilities will increase proportionately with sales, what additi

Calculating Mutually Exclusive Projects

Trail Guides, Inc., is currently evaluating two mutually exclusive investment. After doing a scenario analysis and applying probabilities to each scenario, they have determine that the investments have the following distributions around the expected NPVs. Profitability NPV A NPV B 15% -$

healthcare budgets and management structure

As a member of the finance team, you have been asked to prepare the upcoming yearorganizational budget for your dietary department at Krona Community Hospital. After reviewing specific data, internal input, and external input from various sources, you find that the executive managerment team would like the gudget to reflect the

The INS and OUTS of Campaign Finance

Review the information provided on the Federal Election Commission's website before opening the assessment: You will find answers to the survey there: . Grading for this assignment is pass/fail. You must answer 100% of the questio

Loan factors

An effectively organized loan application reduces the time spent waiting for a response to a loan request. According to John Nelson III, SCORE counselor in Rhode Island and vice president of a major U.S. bank, "in about 80 percent of the cases, the formal request is not complete" (U.S. Small Business Administration, n.d.) What f

Components required to start-up a company's loan package

Imagine you are a loan officer presented with a loan package from a start-up company and one from a well-established company. What specific components would you require in the start-up company's loan package to approve the requested loan? How do your lending requirements for the start-up company differ from those for the establi

Managerial Finance Questions

Can someone please provide information on the following: (1) how working capital can impact a company's finances (2) what the company can do to handle short-term debt that is coming due (3) explain current ratio, discuss its implications, and describe a good current ratio (4) describe briefly how businesses make cap

The Impacts of Ford's Bailout Refusal

I am really struggling with this assignment. I need some direction on how to go about this and what I should use. Evaluate how the refusal of the federal government's bailout fund may have impacted Ford's financial performance negatively and positively.

A bank deposit paying simple interest at the rate

1) A bank deposit paying simple interest at the rate of 5%/year grew to a sum of $3100 in 10 months. Find the principal. 2) RETIREMENT FUNDS: Five and a half years ago, Chris invested $10,000 in a retirement fund that grew at the rate of 10.82%/year compounded quarterly. What is his account worth today? 3) SAVINGS ACCOUNTS