Question
In: Finance
You have been assigned to examine the following funds with their respective probabilities: Stock Fund X...
You have been assigned to examine the following funds with their respective probabilities:
Stock Fund X
Stock Fund Y
Scenario
Probability
Rate of Return (%)
Rate of Return (%)
Severe recession
0.05
-5
11.2
Mild recession
0.15
-1.6
3.3
Normal growth
0.55
7.7
0.5
Boom
0.25
16.3
-4.1
Calculate the standard deviation of a portfolio that invests 55% on stock fund X and 45% on stock fund Y.
Remember to state your answer as a percentage. For example, 99.99%.
Solutions
jeff jeffy answered 1 year agoRelated Solutions
You have been assigned to examine the following funds with their respective probabilities: Stock Fund X...
You have been assigned to examine the following funds with their
respective probabilities:
Stock Fund X
Stock Fund Y
Scenario
Probability
Rate of Return (%)
Rate of Return (%)
Severe recession
0.05
-5
11.2
Mild recession
0.15
-1.6
3.3
Normal growth
0.55
7.7
0.5
Boom
0.25
16.3
-4.1
Calculate the expected return of a portfolio that invests 55% on
stock fund X and 45% on stock fund Y.
Remember to state your answer as a percentage. For example,
99.99%.
You have been assigned to examine the following funds with their respective probabilities: Stock Fund X...
You have been assigned to examine the following funds with their
respective probabilities:
Stock Fund X
Stock Fund Y
Scenario
Probability
Rate of Return (%)
Rate of Return (%)
Severe recession
0.05
-5
11.2
Mild recession
0.15
-1.6
3.3
Normal growth
0.55
7.7
0.5
Boom
0.25
16.3
-4.1
What is the standard deviation of the stock fund X?
Remember to state your answer as a percentage. For example,
99.99%.
You have been assigned to implement a three-month hedge for a stock mutual fund portfolio that...
You have been assigned to implement a three-month hedge for a
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the S&P Midcap 400, and the net asset value of the fund is $186
million.
a. Should you be long or short in the Midcap
400 futures contracts?
Long
Short
b. Assuming the Midcap 400 Index is at 649 and
its futures contract size is 500 times the...
You have been assigned to examine the financial statements of Picard Corporation for the year ended...
You have been assigned to examine the financial statements of
Picard Corporation for the year ended December 31, 2020, as
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You discover the following situations:
1.
The physical inventory count on December 31, 2019, improperly
excluded merchandise costing $26,700 that had been temporarily
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2.
The physical inventory count on December 31, 2020, improperly
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You have been assigned to examine the financial statements of Jones, Inc. for the year ended...
You have been assigned to examine the financial statements of
Jones, Inc. for the year ended December 31, 2018. You discover the
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Jones, Inc. has not accrued salaries payable at the end of
each of the last 2 years, as follows.
December 2016 6000
December 2017 0
December 2018
4,100
2. The physical inventory count has been incorrectly counted
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December 2016
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You have been assigned to examine the financial statements of Waterway Company for the year ended...
You have been assigned to examine the financial statements of
Waterway Company for the year ended December 31, 2017. You discover
the following situations.
1. Depreciation of $3,000 for 2017 on delivery vehicles was not
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You have been assigned to examine the financial statements of ABC corp. for the year ended...
You have been assigned to examine
the financial statements of ABC corp. for the year ended December
31, 2019, as prepared following IFRS. You discover the following
situations:
Physical inventory count on Dec31, 2018, improperly excluded
merchandise costing $13,000 that had been temporarily stored in a
public warehouse. ABC corp uses periodic inventory system
Physical inventory count on Dec31,2019, improperly included
merchandise with a cost of $26,000 that had been recorded as a sale
on Dec27, 2019, and was being...
You have been assigned to examine the financial statements of Novak Company for the year ended...
You have been assigned to examine the financial statements of
Novak Company for the year ended December 31, 2017. You discover
the following situations.
1. Depreciation of $3,100 for 2017 on delivery vehicles was not
recorded.
2. The physical inventory count on December 31, 2016, improperly
excluded merchandise costing $18,500 that had been temporarily
stored in a public warehouse. Novak uses a periodic inventory
system.
3. A collection of $6,000 on account from a customer received on
December 31, 2017,...
You have been assigned to examine the financial statements of Bonita Company for the year ended...
You have been assigned to examine the financial statements of
Bonita Company for the year ended December 31, 2017. You discover
the following situations.
1.
Depreciation of $3,400 for 2017 on delivery vehicles was not
recorded.
2.
The physical inventory count on December 31, 2016, improperly
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3.
A collection of $6,000 on account from a customer received on
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You have been assigned to examine the financial statements of Indigo Company for the year ended...
You have been assigned to examine the financial statements of
Indigo Company for the year ended December 31, 2017. You discover
the following situations.
1.
Depreciation of $3,200 for 2017 on delivery vehicles was not
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2.
The physical inventory count on December 31, 2016, improperly
excluded merchandise costing $17,800 that had been temporarily
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system.
3.
A collection of $5,900 on account from a customer received on
December 31, 2017,...
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