Explore BrainMass


Risk Adjusted Return

Manager A shows a return of 20% with a standard deviation of 17%. Manager B shows a return of 13% with a standard deviation of 6%. If the risk free rate is 5% which manager has the better risk adjusted return?

Interpret the given measures.

What does it mean if a domestic mutual fund has a beta coefficient of 1.25, an alpha coefficient of 2.25 and an R-Square of 75? Explain each measurement and then interpret what these measurements mean for this mutual.

Determining the stock price

Common Stock of Coquihalla Corporation will pay a dividend of $8.00 in the upcoming year, and dividends are expected to grow 5% per year in the future. Your required rate of annual return is 12% . Using the Constant Dividend Growth Model calculate the current price of the Common Stock.

Google's Financial Condition

I need help with evaluating the financial condition of Google and its ability to achieve the strategic objectives as discussed in the annual report. Please provide references - annual report attached.

Compute the productivity ratios for the old and the new production systems.

Howard, Inc produces carbon graphite fiber shafts for Calloway golf clubs. Last year their average monthly production included 19,000 shafts using 1 shift of 3 technicians working 20 days a month and 8 hours a day. Of the items produced, 15% were deemed defective and were scrapped due to poor tensile strength. Recently, Howar

Simple Wage Calculations

Business Statistics At a national seashore, the number of swimmers per day who require lifeguard assistance averages 4.1. On any day when 7 or more swimmers are assisted, the lifeguards receive a $20 bonus for extra effort. Bob's base life-guarding pay is $12 per hour for each eight-hour day. Taking into account the extra-eff

Price Changing

The Healthy Spring Water company sells bottled water for offices / homes. The price of the water is $20 per 10 gallon bottle and the company currently sells 2,000 bottles per day. The company's daily income and costs: Sales revenue: $ 40,000 Variable cost : $ 16,000 Fixed cost: $ 20,000 1. What is the maximum sales los

Insurance and Risk Retention

1. How could loss control approaches be used to reduce the risk of injury to construction company employees and a medical transporter by car? 2. What can be done when the cost of insurance is too high? 3. What are some disadvantages of increased risk retention?

Valuation: Piedmont Enterprises Stock Valuation

12. Piedmont Enterprises currently pays a dividend (D0) of $1 per share. This dividend is expected to grow at a 20 percent per year for the next 2 years, after which it is expected to grow at 6 percent per year for the foreseeable future. If you require a 15 percent rate of return on an investment of this type, what price do you

Industry Standards

Please obtain industry standards for ratios for Microsoft and two of its competitors, Oracle Corp and Apple.

Stock Variance Standard Deviation

The standard deviation of the market index portfolio is 20%. Stock A has a beta 1.5 and residual standard deviation of 30%. A) What would make for a larger increase in the stock variance, an increase of 1.5 in its beta or an increase of 3% in its residual standard deviation? B) An inventor who currently holds the market i

Developing financial plans

I need help with developing the rudiments of a financial plan. The questions are relative to an etiquette and image consultant, one-owner, corporation type business. 1.Explain the financial requirements for the venture, including the amounts needed for cash flow and profitability. 2.Create a cost of operating report for your

Real Companies with Negative Betas

There are few, if any, real companies with negative betas. But suppose you found one with B=-,25. A. How would you expect this stock's rate of return to change if the overall market rose by an extra 5%? What if the market fell by an extra 5%? B. You have $1 million invested in a well-diversified portfolio of stocks. Now

Calculating the Variance of Portfolio Returns

Hayacinth Macaw invests 60% of her funds in stockI and the balance in stock J. The standard deviation of returns on I is 10%, and on J it is 20%. Calculate the variance of portfolio returns, assuming: A. the correlation between the returns is 1.0 B. The correlation is .5 C. The correlatio is 0.

Calculate the variance and standard deviation in the given case.

A game of chance offers the following odds and payoffs. Each play of the game costs $100, so the net profit per play is the payoff less $100. Probability .10, .50 and .40. Payoff is $500, 100 and 0. net Profit is $400, 0 and -100. What are the expected cash payoff and expected rate of return? Calculate the variance and stan

The Power - or Curse - of Compounding

Chapter 4 in the Finance: Applications and Theory textbook by Cornett, Adair, and Nofsinger provides an introduction to the main concepts of the time value of money for a single cash flow amount. These concepts are important in finance, because cash flows analyzed in most of finance occur at various periods of time, and adjustme

Buy sell recommendation

Make recommendations: on the following two companies: Pep Boys O'Reilly Automotive Inc From an investor's perspective of whether one should buy/sell/remain neutral on both stocks. From a lender's perspective of whether or not a short-term and/or long-term loan should be made to either company. From a manager's perspecti

Electronic Fraud and Cyber Attacks

Electronic Fraud and Cyber Attacks: In an increasing wired world, what should Corporation of the world do to protect the Financial Privacy of Individuals?

What will be the forward rate between Yen and Pounds, one year from now?

The Current Exchange Rate between Japan and U.K. is One British Pound Equals 150 Japanese Yen. The one year Annual Interest Rate in Japan is 1%, while the Annual Interest Rate in U.K. is 4%. Given this, what would you expect the Forward Rate to be between Japanese Yen and British Pounds, one year from now?

Linear program-solution using Excel QM

Using Excel QM show and solve the following problem: The dean of Western college of business must plan the school's course offerings for the fall semester. Student demand makes it necessary to offer at least 30 undergraduate and 20 graduate courses in the term. Faculty contracts also dictate that at least 60 courses be offered

Planning and Budgeting to Carolina Medical Center

I need information in regards to Carolina medical center in North Carolina and planning and budgeting and explaining on the topics below. http://www.carolinashealthcare.org/ 1. Describe the overall planning process and the likely components of CHS's financial plan. Be sure to include discussion as to how you arrived at an

Calculating the risk premium and expected return

Risk Free rate 4% and the expected return on the market portfolio is 12%. Using the capital asset model: (a). What is the risk premium on the market? (b). What is the required return on an investment with a beta of 1.5? (c). If an investment with a beta of .8 offers an expected return of 9.8%, does it have a positive NPV?

The Value of Stock

Otobai Motor Company is currently paying a dividend of $1.40 per year. The dividends are expected to grow at a rate of 18% for the next three years and then a constant rate of 5% thereafter forever. What is the value of its current stock price? Assuming that the discount rate is 10%. Please show calculation.

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?

Do CFOs Really Make Good CEOs

Do you think finance departments are the best place to train future CEOs? Provide two actual examples of CFOs of publicly-traded companies who became CEOs of publicly-traded companies within the past 5 years. Do these individuals have the CPA and/or CFA designations?

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,