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Lily33
Jan 21, 2011, 10:23 AM
Hi,everyone. I'm junoir here
I've a problem question about portfolio require return..
In here, can I please any expert to solve my problem?

Question:

A money manager holds the following portfolio
Stock Amount Invested Beta (β)
1 300K 0.6
2 300K 1.0
3 500K 1.4
4 500K 1.8

Risk-free rate is 6% at the portfolio's required rate of return is 12.5%. The manager would like to sell all of her holdings of stock 1 and use the proceeds to purchase more share of stock 4. What would be the portfolio's required rate of return following this change?

Lily33
Jan 21, 2011, 10:55 AM
1. Your father is 50 years old and will retire in 10 years. He expects to live for 5 years after he retires until he is 85. He wants a fixed retirement income of $ 40k. His retirement income will begin one year after the day he retires, 10 years from today. Your father has currently invested $50k, how much must he have each year, starting at the end of the year to be able to retire? 8% return on fund is expected.

Lily33
Jan 21, 2011, 10:57 AM
7.A. Why do options typically sell at prices higher than their exercise value?

B. Explain how futures markets can be used to reduce input price risk (hedging

Curlyben
Jan 21, 2011, 11:13 AM
Thank you for taking the time to copy your homework to AMHD.
Please refer to this announcement: https://www.askmehelpdesk.com/finance-accounting/announcement-font-color-ff0000-u-b-read-first-expectations-homework-help-board-b-u-font.html

Lily33
Jan 23, 2011, 07:57 AM
Hey.. curlyben.. I can't access the website that you sent..
Can please you teach me in here, I mean comment here?
Thanks