Compute the portfolio DEAR for the following bank portfolio DEAR ($) Assets Stocks Bonds Loans $...
Fantastic news! We've Found the answer you've been seeking!
Question:
Transcribed Image Text:
Compute the portfolio DEAR for the following bank portfolio DEAR ($) Assets Stocks Bonds Loans $ $ $ Commodities $ in 100,000 250,000 300,000 50,000 Stocks What is the bank's portfolio DEAR? 1 Correlations Bonds -0.25 1 Loans Commodities 0.15 0.1 1 -0.35 -0.15 -0.13 1 What is the difference in portfolio DEAR of all assets were pefectly correlated? Compute the portfolio DEAR for the following bank portfolio DEAR ($) Assets Stocks Bonds Loans $ $ $ Commodities $ in 100,000 250,000 300,000 50,000 Stocks What is the bank's portfolio DEAR? 1 Correlations Bonds -0.25 1 Loans Commodities 0.15 0.1 1 -0.35 -0.15 -0.13 1 What is the difference in portfolio DEAR of all assets were pefectly correlated?
Expert Answer:
Answer rating: 100% (QA)
To calculate the portfolio DEAR DiversificationAdjusted Expected Absolute Return we need to consider the weights of each asset in the portfolio and th... View the full answer
Related Book For
Calculus Early Transcendentals
ISBN: 978-0321947345
2nd edition
Authors: William L. Briggs, Lyle Cochran, Bernard Gillett
Posted Date:
Students also viewed these accounting questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...
-
Question 2: What kind of path/steps should the researcher follow, who wants to demonstrate/support the view that "There is a relationship between the COVID-19 spread indicators (cases, number of...
-
Suppose you are a depositor at First Street Bank. You hear a rumor that the bank has suffered serious losses on its loans. Every depositor knows that the rumor isnt true, but each thinks that most...
-
The speed of a good base runner is 9.5 m/s. The distance between bases is 26 m, and the pitcher is about 18.5 m from home plate. If a runner on first base edges 2 m off the base and takes off for...
-
A trinomial lattice is a special case of a trinomial tree. From each node three moves are possible: up, middle, and down. The special feature of the lattice is that certain pairs of moves lead to...
-
Information disclosed in financial reports should have a number of characteristics (e.g. understandability, neutrality). What are these characteristics? Provide two examples of situations where there...
-
If a circuit contains 3 automatic switches and we want that, with a probability of 95%, during a given time interval they are all working, what probability of failure per time interval can we admint...
-
Vernova Corp. is an electricity supplier in the US. The company has historically generated the majority of its electricity using a coal fueled power station, but as a result of the closure of many...
-
Kitchen World Inc. is a Canadian controlled private corporation (CCPC) that operates a retail business selling cooking utensils, knives and small appliances for both professional chefs and home...
-
The graph of f(in blue) is translated a whole number of units horizontally and vertically to obtain the graph of k (in red). The function is defined by /(x) = -x. Write down the expression for k(x)....
-
10) If the third and fourth terms of an arithmetic sequence are -7 and -10, what are the first and second terms?
-
10.2 A single-phase half-wave converter in Figure P10.1 is operated from a 120-V, 60-Hz sup- ply. If the load resistive load is R = 5 2 and the delay angle is a = /3, determine (a) the efficiency,...
-
A. Calculate the modulus, the ratio of fiber stress to matrix stress, the ratio of fiber stress to composite stress for unidirectional composites with VF = 10%,25%, 50% & 75%. Assume the composites...
-
Premiums ***** Strike Call ............. Put ..... 90......... 14.63 0.24.... 100 6.80 1.93 ..... ******* for stock XYZ options with 6 months to expiration: 2.17.......... Assume the effective...
-
Evaluate the sum. 14 4) (24-4n) n = 1 Write a formula for the nth term of the geometric sequence. 64 5), 8, 5, 25 8
-
A building is purchased on January 1, 2020 for $75,000.00. This building is always expected to have a value of $15,000.00. The useful life of this building is 20 years. Depreciation is recorded at...
-
In the series connection below, what are the respective power consumptions of R, R2, and R3? R R www 4 V=6V P1-3 W; P2=3W; and P3= 3 W OP10.5 W; P2-1 W; and P3= 1.5 W P1=1.5 W; P2=1 W; and P3= 0.5 W...
-
Use the Root Test to determine whether the following series converge. 00 10k + k 9k3 + k + 1 ,3 |k=1
-
Archimedes principle says that the buoyant force exerted on an object that is (partially or totally) submerged in water is equal to the weight of the water displaced by the object (see figure). Let ...
-
Carry out the following steps. a. Use implicit differentiation to find dy/dx. b. Find the slope of the curve at the given point. tan xy = x + y; (0, 0)
-
The following table presents prices, in thousands of dollars, of single-family homes for some of the largest metropolitan areas in the United States for the third quarter of 2015 and the third...
-
Following are the closing prices of Google stock for each trading day in May and June of a recent year. a. Find the mean and median price in May. b. Find the mean and median price in June. c. Does...
-
Following are the weights, in pounds, for offensive and defensive linemen on the New York Giants National Football League team at the beginning of a recent year. a. Find the mean and median weight...
Study smarter with the SolutionInn App