Question: Please show step by step Math solvings OR Step by step function from the financial calculator. Thank you Question 1 (10 points) Please use our

Question 1 (10 points) Please use our Chapter 8 PPT slides to answer the question: Suppose a portfolio manager wishes to construct a portfolio using two securities Coll and USR, both of their return data are shown in the Slide 5 with the title "Hypothetical Investment Alternatives". Specifically, the manger allocates $60,000 in the Coll and $30,000 in the USR. Please calculate (1) Portfolio Expected Return (2) Portfolio Standard Deviation Question 2 (10 points) The Ally Food Corp. has issued 18-year, 8% semi-annual coupon, noncallable bonds at their par value of $1,000 three year ago. Today, the market interest rate on these bonds is 4.5%. What is the current price of the bonds? Question 3 (10 points) Mary Inc. is considering mutually exclusive Projects A and B, whose cash flows are shown below. If the decision is made by choosing the project with the higher IRR, will there be any value loss due to the IRR-based decision? If there is a loss, how much value will be forgone? The WACC is assumed to be 9.5%. WACC: 9.5% Year CFA CF -$2,020 | -$4,100 $730 $1,400 $730 $1,500 $740 $1,520 S740) $1,530 | Hypothetical Investment Alternatives Economy Prob. T-Bills HT Coll USR Recession 0.1 5.5% -27.0% 27.0% 6.0% Below avg 0.2 5.5% -7.0% 13.0% -14.0% Average 0.4 5.5% 15.0% 0.0% 3.0% Above avg 0.2 5.5% 30.0% -11.0% 41.0% Boom 0.1 5.5% 45.0% -21.0% 26.0% MP -17.0% -3.0% 10.0% 25.0% 38.0% Question 1 (10 points) Please use our Chapter 8 PPT slides to answer the question: Suppose a portfolio manager wishes to construct a portfolio using two securities Coll and USR, both of their return data are shown in the Slide 5 with the title "Hypothetical Investment Alternatives". Specifically, the manger allocates $60,000 in the Coll and $30,000 in the USR. Please calculate (1) Portfolio Expected Return (2) Portfolio Standard Deviation Question 2 (10 points) The Ally Food Corp. has issued 18-year, 8% semi-annual coupon, noncallable bonds at their par value of $1,000 three year ago. Today, the market interest rate on these bonds is 4.5%. What is the current price of the bonds? Question 3 (10 points) Mary Inc. is considering mutually exclusive Projects A and B, whose cash flows are shown below. If the decision is made by choosing the project with the higher IRR, will there be any value loss due to the IRR-based decision? If there is a loss, how much value will be forgone? The WACC is assumed to be 9.5%. WACC: 9.5% Year CFA CF -$2,020 | -$4,100 $730 $1,400 $730 $1,500 $740 $1,520 S740) $1,530 | Hypothetical Investment Alternatives Economy Prob. T-Bills HT Coll USR Recession 0.1 5.5% -27.0% 27.0% 6.0% Below avg 0.2 5.5% -7.0% 13.0% -14.0% Average 0.4 5.5% 15.0% 0.0% 3.0% Above avg 0.2 5.5% 30.0% -11.0% 41.0% Boom 0.1 5.5% 45.0% -21.0% 26.0% MP -17.0% -3.0% 10.0% 25.0% 38.0%
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