FinCorp Inc. has been using the services of San Bernadino Brokerage Company (SBBC) for the past six months. SBBC has informed FinCorp Inc. that the geometric mean monthly return was 7 percent and that over the past six months FinCorp Inc. earned 16 percent, 19 percent, −23 percent, 14 percent, −8 percent, and an unknown amount in the last month. Determine the missing return.
Answer to relevant QuestionsTo achieve a zero standard deviation for a portfolio, calculate the weights of stock A and stock B in Practice Problem 35, assuming the correlation coefficient is−1.A lawyer prosecuting a lawsuit against The Brokerage Company has hired you to conduct an investigation into the advice the company has been giving its clients. You observe that clients have invested in the following ...Stock FM has a standard deviation of 25 percent and a correlation coefficient of 0.6 with market returns. The standard deviation of market return is 20 percent, and the expected return is 16 percent. The risk-free rate is ...Determine the beta of QTax based on the following information:• Market expected return is 8 percent; standard deviation is 3 percent• Risk-free rate is 3 percent• Current dividend is $4.50• Dividend growth rate is 5 ...Which of the following are examples of systematic (market) risks? Which are examples of unsystematic (unique) risks?a. Inflation riskb. CFO’s fraudulent activitiesc. Changes in interest ratesd. Product tamperinge. ...
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