Call us 24/7: + 1(925)399 0085

Get your paper done by an expert

No matter what kind of academic paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcer. Save more time for yourself.

Order A Custom Paper

Approximate price: $

19 k happy customers
8.5 out of 10 satisfaction rate
527 writers active

Risk and Rates of Return

Case 84MStudent Version9/28/96
Filmore Enterprise.0/msohtmlclip1/01/clip_image001.png” alt=”STUDENT version instructions”>

Risk and Rates of Return

INSTRUCTIONS: This case begins with data on the state of the economy and returns on
Treasury securities, 3 different stocks, and the S&P index (market). The model calculates
the expected return, standard deviation, and coefficient of variation for each of the assets
and for a 2-stock portfolio. The model allows you to change the mix of the 2-stock
portfolio and then see the change in the portfolio’s expected return and standard deviation.
In addition, the model uses the spreadsheet regresson feature to determine the equation for
each asset’s characteristic line, hence each asset’s beta coefficient. Note that if the input
data are changed, the regression analysis must be rerun. Four different graphs can be
viewed by clicking on the tabs at the bottom of the workbook.

A list of graphs follows:
PORTSIZEPortfolio Size and Risk, Q5

CHARLINECharacteristic Lines, Q7

SMLSecurity Market Line, Q8

SMLCHGSChanges in SML, Q10

The following cells have been blanked out:
I41:K45, D47:K47, E49:E50, D85:H89, C91, C228:C236, and E228:E236.
|::
———
INPUT AND MODEL-GENERATED DATA:
Portfolio Mix
——————-
% CPC50.0%% CPC40.0%% MORLEY50.0%
% MORLEY50.0%% EAT60.0%% EAT50.0%
NASDAQPort:
EconomyProb.T-BillsT-BondsCPCMORLEYEATIndexCPC-MORELY
——————————————————–
Recession0.104.5%10.0%-18.00%18.00%-13.00%-13.00%
Below avg0.204.5%7.0%-8.00%14.00%-6.00%-2.00%
Average0.404.5%5.0%11.00%6.00%10.00%11.00%
Above avg0.204.5%3.0%26.00%-1.00%20.00%17.00%
Boom0.104.5%2.0%35.00%-11.00%30.00%22.00%
——————————————————————–
Expected return4.50%
Variance0.032.0351.398.3234.1172.30.0
Std deviation0.00%5.66%9.91%15.30%13.13%0.00%
Coef of var (CV)0.00#DIV/0!#DIV/0!#DIV/0!#DIV/0!#DIV/0!
Beta coefficient0.00-0.220.00-0.771.221.00

SECURITY MARKET LINE:
Risk-free Rate:0.00%SML Equation:
Market Return:0.00%k = kRF + (kM – kRF)b
Beta:1.00k =0.00%+0.00%b
SML Equation:0.0%
|::
CHARACTERISTIC LINES:
XY
T-Bills(Market)(Bills)Est. Y
Regression Output:—
Constant0.05-13.0%4.5%4.5%
Std Err of Y Est0.00-2.0%4.5%4.5%
R Squared0.0011.0%4.5%4.5%
No. of Observations517.0%4.5%4.5%
Degrees of Freedom322.0%4.5%4.5%
———
X Coefficient(s)0.00
Std Err of Coef.
XY
T-Bonds(Market)(Bonds)Est. Y
Regression Output:—
Constant0.07-13.0%10.0%9.9%
Std Err of Y Est0.00-2.0%7.0%7.4%
R Squared0.9911.0%5.0%4.5%
No. of Observations517.0%3.0%3.2%
Degrees of Freedom322.0%2.0%2.1%

Our guarantees

Study Acers provides students with tutoring and help them save time, and excel in their courses. Students LOVE us!No matter what kind of essay paper you need, it is simple and secure to hire an essay writer for a price you can afford at StudyAcers. Save more time for yourself. Delivering a high-quality product at a reasonable price is not enough anymore.
That’s why we have developed 5 beneficial guarantees that will make your experience with our service enjoyable, easy, and safe.

Money-back guarantee

You have to be 100% sure of the quality of your product to give a money-back guarantee. This describes us perfectly. Make sure that this guarantee is totally transparent.

Read more

Zero-plagiarism guarantee

Each paper is composed from scratch, according to your instructions. It is then checked by our plagiarism-detection software. There is no gap where plagiarism could squeeze in.

Read more

Free-revision policy

Thanks to our free revisions, there is no way for you to be unsatisfied. We will work on your paper until you are completely happy with the result.

Read more

Privacy policy

Your email is safe, as we store it according to international data protection rules. Your bank details are secure, as we use only reliable payment systems.

Read more

Fair-cooperation guarantee

By sending us your money, you buy the service we provide. Check out our terms and conditions if you prefer business talks to be laid out in official language.

Read more

Our Homework Writing Disciplines

With a highly diverse team in almost all academic fields including: