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Can someone explain 51 & 52 please :)
How do you calculate this?
How would you calculate the bond yield to maturity?
You cannot calculate it here, but you have the information that even though the company paid a coupon of 5€, the price of the bond went up. However, when the YTM increases, it usually causes the price of the bond to go down. (Nonetheless, here you can get that answer C is the right one)
Thanks Singer
I don't get why in projet n°3, they subtract 9million rather than 11 million ? Is it a typo ?
Yep, most probably a typo
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A document with the calculations were posted last year :)
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Do you have a summary on this weeks Lecture as well?
Hi! No sorry, but the slides are online :D
You get 0.5 by dividing the debt-to-equity ratio (1.0) by 2 right?
basically you take the debt-to-equity ratio divided by itself plus 1, for instance: debt-to-equity 1.5 (debt is 1.5 times as large as equity), so 1.5/(1.5+1)= 60% for rd and thus 40% for re. same procedure here in 3: 1/(1+1)= 0.5 for both rd and re. so not just dividing by 2, you might get to a another percentage as a result - if you take the debt-to-equity of 1.5 as an example
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Is this based on the same book?
Looks like it is.
Yes I think they had the same book
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Wtf ! Do you only want to share your document with Germans ?
Oh, have a sense of humour. At least he wrote in English.
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Where does the 1250 come from in exercise D? I see the 125:0.1
why rD is 0.0902?
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I got it, the rd = cost of debt = ytm we calculated in a
Thanks! How did u calculate the YTM?
Why is this 0.5?
because the debt to equity ratio = 1.0 -> debt = equity -> 0.5 for both
Task 10 anyone ?
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why the downvotes?
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if that's the reason you downvote, you need to find a hobby. Thanks for compiling the summary.
these downvoters need to get a life. its fucking studydrive you nerds. get a life.
Does someone know how to solve this one?
Can somebody please upload task 10 ?
I have seen this in many summaries, this is not true. The buyer is only willing to pay the bid price and the marketmaker cannot get the difference between the bid and ask. This would mean that the buyer pays more than he is willing to do and the seller gets less money than he wants to get.
they can't be downward sloping, neither one of them
in theory nope but it has been shown that in practice this might be the case
I do not get how can we solve this, can someone explain?
Hey there. In these kind of exercises always look out for specific keywords. Here they mention the word forever which leads us to a perpetuity formula. This combined with an IRR calculation where the NPV of a project is 0 gives us the following: NPV=-Investment+PV(Perpetuity) --> 0=-Investment+1500/0,05. If we solve this for the investment, we get to 30000. As we get 1500 per year, it takes 20 years until we have our investment back. Hope that clarifies it :)
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Thank you !
I don't get this one can someone explain me how (s)he did it?
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Cuz you don't calculate it the correct way lol
Got it now :/ ahaha
How do we solve this one?
How do we solve these 2? Thanks
19) 0=-350+25/(r-0.02) for Kimjong and 0=-350+50/r for Trumpie, calculate it and you'll see that B is correct. 20) -350+25/(r-0.02)=-350+50/r and you'll get to C.
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wow that's so helpful!! Thank you :)
Can someone explain please ? The correct answer is B)
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= 37,500*
True my bad ahah :/
Why can't I use the equation 11.13 in this part?
I think you can & you should get to the same result! 😊
Can someone explain please?
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Where did you find this formula?
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Thank you Francesco!
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wow! awesome!
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how did you do the table with the five columns asked, can someone gave me the formula
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The Formula is in the manual and the daily return is the average of all daily returns. The calculation is on Sheet 1, marked in green.
awesome thank you!
Where did you get these percentages from ?
It is the return you calculated in a) with the formula from the manual
should be x = -15, 64 I think ( you did 0.08x - 0.045x instead of 0.08x + 0.045x) :)
The final answer for that task is right as it is supposed to be 57% and 43%, but the process is wrong because you don't get 57 if you follow that calculation (you always get -15,64 or -58,43 instead of 57)
The hero who put all the answers online for the exercises of the tutorials under the name ''ALL YOU NEED TUTORIAL ...'', you're the GOAT. Could you perhaps also upload them for the upcoming tutorials? Thanks in advance!
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Could please upload a full summary later on? Your summaries are great! :)
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Thankss ☺️
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Why, for Step 3, did you use the formula for the Volatility of a Large Portfolio?
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exactly. thank you jasper!!
But why then do you insert 0.03125 for Average Variance? Isn't this the Average Covariance? And why do you insert the correlation for average covariance?
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Did you already manage to get the condoms?
still waiting untill I have enough for the hoodie so I can be a real studydrive slut!
please wear the hoodie to the lectures
Shouldn't it be "Probability of return x (Return - Expected Return)^2?" Page 355
yes this is wrong
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How did you do h) ??
It is all the daily returns for the six companies, put into the correlation function under data analysis.
Why isn't it -0.125 here?
I demand some more elaboration on the answer of question 3
I don't get how to find answer B). Can someone explain ?
Hey Lucie. What we do here is a Future Value calculation for which we use the following Forumla: FV=PV*(1+r)^n. Our FV is 2000, PV 1000 and r is 5%. Thus, we get to 2000=1000*1,05^n. We can simplify this to 1,05^n=2, then apply the logarithm and get no n= ca.14,2. Hope this helps you :)
Where is it in the book?
here it is but further explanations are also in the text that just refer to general portfolio theory so it is not mentioned directly
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This is perfect. Thank you so much!
Thanks :D
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Cool thank you!
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