Resit 2017.pdf

Uploaded by Anonymous User at 2018-05-27

Resit Version U

is this question wrong?
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i know but i still cant get even close to one of the anwsers could you show?
15000* ((1.05^30 -1)/0.05) = 996583 (A)
Where is net income here?
You have to calculate net income using the the retained earnings from 2014 and 2015. End retained earnings = Beginning retained earnings + net income - dividends 23.150 = 12.968 + net income - 0 Net income = 10.182
how do you know that?
What is the solution?
This one really confused me
could somebody show the calculation for the standard deviation of p? I get to 10.4%
In the book it says that the efficient portfolio has the highest sharpe ratio. Can somebody explain why a is false/ the correct answer?
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Q43) - When I calculate for E(r) I get 8.8, yielding SD(Rp)= root0.7(16-8.8)^2 + 0.3(-8-8.8)^2 , from which I get 11%, yet the answer is 2.5, what did I do wrong?
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Why is that ? Like, what is the difference of the two SD formulas ? How can you see which formula to use?
This was mainly covered in QM.
How do I calculate the beta here?
Beta = Covariance between stock & market / Variance of the market. So, 5/2^2 = 1.25
Thank you!
Q31 ?
same question..
The sentence with the 8% is not relevant for the exercise. What you should remember is that the YTM is the IRR of the bond. You purchased the bond at par, hence the YTM is equal to the annual coupon rate, which is equal to 6%. Then, your IRR is equal to 6%
Can someone help me Q.25 ?
FCF = (revenues - expenses - depreciation) × (1 - tax rate) + depreciation FCF = (20 - 12 - 3) × (1 - .35) + 3 = 6.25
Q44: How to solve?
Amount in XYZ =-5000/10000=-50% Amount in Treasury bills=15000/10000=150% Return on treasury bills=0,05 Return on XYZ= [Div1+P1(30)]/Po(25)=1,2-1=0,2 EXP portfolio=1,5*0,05-0,5*0,2=-0,025
where can I find this formula?
Q36: How ?
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P. 323 formula 9.24 and it says on the formula sheet for the discounting free cash flow that you have to use FCF + V
so (1.05/0.13-0.05) x 40 = 525
Q27 - How can you calculate the SD and Variance in this case?
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How to solve Q33 ?
this is from the answer key
Q34: How do you solve this? I get 66, instead of 20 (Answer A)
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what is r(e) again ? And solving for it I definitely do not get 0.1...
return on equity and the solution is correct...
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Q26) How to calculate?
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it is -600,000+(50,000/0.05) when you divide it the parentheses part is 1 million then you subtract the -600,000 so your initial investment . idk how you got -100k...
But why not devided by 1.05?
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How to solve Q7?
Convert 202,000 euros to dollars by dividing by 0.75, so you get 269,333 dollars. Then calculate NPV = -$250,000 + ($269,333/1.07) = $1,713
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Q43: why?
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Which formula do you use for SD(stockt)/sqrt20? Or is it from the book? If yes from which cahpter? Thanks :D
Page 362 and 368 (chapter 10)
Q58: How to calculate?
0.2*0.15+0.5*0.1+0.2*(-0.05)+0.1*(-0.25)=0.045and variance=0.2*(0.15-0.045)^2+0.5*(0.1-0.045)^2+0.2*(-0..05-0.045)^2+0.1*(-0.25- 0.045)^2=0.014225---> SD11.926%
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Q27) - Why not D? 4-3/7 is not 0?
The savings account is right on the risk free rate so on the y axis which means that it has a sharpe of 0
how to calculate Q29 ?
(100-89.68)^0.5 then minus 1
Q13: why D?
Q11: Why is this C?
Sorry, I meant Q11
The initial cash flow would be 1000/1.1 + 4000/1.1^2 ... until 2000/1.1^5 = 15 633,6 if you switch the 2 cash flow you will get 15 222.5 which is lower than the 1st one.
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Q44: what is the calculation?
Q52: calculation?
Q44: Short 5000 in XYZ and invest it in rf. Also invest 10000 in rf. Hence, total investment in rf : 15000 Total investment in XYZ : -5000 Then the weight in rf : 1.5 weight in XYZ : -0.5 Return XYZ : (29+1-25)/25 = 20% Return rf: 5% Portfolio return : -0.5 * (20%)+ 1.5*(5%) = -2.5% => ANSWER A
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how to solve Q 5 ?
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Why is that?
When multiplying them, the earnings cancel out, leaving the market-to-book ratio
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Q27: what is the logic behind it?
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How to solve Q7?
You first need to convert the 202 000 euro to dollars, by dividing it by 0.75. This gives you a cash flow of 269 333.33 dollars. Next, plug it in the NPV formula: -250 000 + (269 333,33 (1.07^1)). This gives you 1713 dollars. Because the NPV is positive, the student should take the project