From agehr at mozart.depaul.edu Mon Jan 13 12:18:25 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Answers to text questions Message-ID: Here are the answers to the text questions I assigned last class. Chapter 5: 1) c 2) b 3) d 4) b 5) a 6) c Chapter 6 1) 100,000x1.05^7=140,710.04 4) mean= 14 std. dev. = 23.24 6) arith. mean = 3.15% geom. mean = 2.33% dollar wtd avg= 0.17% 12) a) mean =14 std. dev. = 18.9 b) a= 18.9%, b = 23.1%, c = 28%, risk-free = 30% c) both = 0.37 13) a) 80% in risky portfolio b) a= 21.6% b = 26.4%, c = 32%, risk-free = 20% c) 21.6% 14) a) y = 0.74074 b) expected return = 14.41% From agehr at mozart.depaul.edu Tue Jan 14 09:18:33 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: test Message-ID: this is a test message to see whether the list is working. From agehr at mozart.depaul.edu Tue Jan 14 13:00:26 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Archive problems Message-ID: There seems to be a problem with the mailing list archive. It's being checked now and I hope we can get the problem resolved today. From scuba09 at msn.com Wed Jan 15 10:04:36 2003 From: scuba09 at msn.com (DEBORAH BESENHOFER) Date: Wed Apr 16 16:11:37 2003 Subject: Question #6 ($ wtd avg) Message-ID: Does anyone have the actual cash flow amts used to get the dollar wtd avg=.17%? I have -300, -220, 90 and 429.25??? and come up with a wtd avg=-.06%. I can't figure out how the answer should be .17%. Debbie Besenhofer -------------- next part -------------- An HTML attachment was scrubbed... URL: http://mailman.depaul.edu/pipermail/fin335/attachments/20030115/1d0a8a46/attachment.htm From aveina2 at hotmail.com Wed Jan 15 10:43:17 2003 From: aveina2 at hotmail.com (Laura Gonzalez) Date: Wed Apr 16 16:11:37 2003 Subject: Chp 6-Problem 12 Message-ID: An HTML attachment was scrubbed... URL: http://mailman.depaul.edu/pipermail/fin335/attachments/20030115/5c4a1cbf/attachment.htm From agehr at mozart.depaul.edu Wed Jan 15 12:02:57 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Question #6 ($ wtd avg) In-Reply-To: Message-ID: You have to calculate in the dividends received every year. For example, after one year you recieve dividends on three shares ($12) and pay 220 for the new shares for a net cash outflow of 208. On Wed, 15 Jan 2003, DEBORAH BESENHOFER wrote: > Does anyone have the actual cash flow amts used to get the dollar wtd avg=.17%? > I have -300, -220, 90 and 429.25??? and come up with a wtd avg=-.06%. I can't figure out how the answer should be .17%. > Debbie Besenhofer > From agehr at mozart.depaul.edu Wed Jan 15 12:05:58 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Chp 6-Problem 12 In-Reply-To: Message-ID: You take a weighted average of the return on the portfolio and the return on the risk-free rate: (fraction in portfolio)x(expected return on portfolio)+(fraction in risk-free security)x)(return on risk free security) On Wed, 15 Jan 2003, Laura Gonzalez wrote: > Can anyone assist with problem #12.  Specifically how the means > were calculated.  Just a and b. >   > thank you > Laura Gonzalez > > __________________________________________________________________________ > > The new MSN 8: smart spam protection and 2 months FREE*. > From agehr at mozart.depaul.edu Wed Jan 15 12:17:35 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: web archive fixed Message-ID: The problem with the web archive has been fixed and all messages (including the text answers) are posted there. From tiffany at brfinc.com Wed Jan 15 13:42:01 2003 From: tiffany at brfinc.com (Tiffany Irving) Date: Wed Apr 16 16:11:37 2003 Subject: Question #6 ($ wtd avg) In-Reply-To: Message-ID: I think I've calculated the correct cash flows, but I get an IRR of -.17% I'm using cash flows, -300, -208, 110, and 396. Any suggestions? Thanks. Tiffany Irving -----Original Message----- From: owner-fin335@forums.depaul.edu [mailto:owner-fin335@forums.depaul.edu]On Behalf Of Adam Gehr Sent: Wednesday, January 15, 2003 12:03 PM To: DEBORAH BESENHOFER Cc: fin335@forums.depaul.edu Subject: Re: Question #6 ($ wtd avg) You have to calculate in the dividends received every year. For example, after one year you recieve dividends on three shares ($12) and pay 220 for the new shares for a net cash outflow of 208. On Wed, 15 Jan 2003, DEBORAH BESENHOFER wrote: > Does anyone have the actual cash flow amts used to get the dollar wtd avg=.17%? > I have -300, -220, 90 and 429.25??? and come up with a wtd avg=-.06%. I can't figure out how the answer should be .17%. > Debbie Besenhofer > From agehr at mozart.depaul.edu Wed Jan 15 13:48:34 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Question #6 ($ wtd avg) In-Reply-To: Message-ID: You're right--there's a typo in the answers. On Wed, 15 Jan 2003, Tiffany Irving wrote: > I think I've calculated the correct cash flows, but I get an IRR of -.17% > I'm using cash flows, -300, -208, 110, and 396. > > Any suggestions? Thanks. > Tiffany Irving > > -----Original Message----- > From: owner-fin335@forums.depaul.edu > [mailto:owner-fin335@forums.depaul.edu]On Behalf Of Adam Gehr > Sent: Wednesday, January 15, 2003 12:03 PM > To: DEBORAH BESENHOFER > Cc: fin335@forums.depaul.edu > Subject: Re: Question #6 ($ wtd avg) > > > You have to calculate in the dividends received every year. For example, > after one year you recieve dividends on three shares ($12) and pay 220 for > the new shares for a net cash outflow of 208. > > > On Wed, 15 Jan 2003, DEBORAH BESENHOFER wrote: > > > Does anyone have the actual cash flow amts used to get the dollar wtd > avg=.17%? > > I have -300, -220, 90 and 429.25??? and come up with a wtd avg=-.06%. I > can't figure out how the answer should be .17%. > > Debbie Besenhofer > > > > > From agehr at mozart.depaul.edu Mon Jan 20 13:19:19 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: answers to problems Message-ID: Here are the answers to the problems I assigned in class last Wednesday. 1) 12.1% 6) min variance mean = 15.83, std dev. = 19.94 7) Tangency mean = 19.37, std. dev. = 24.57 8) reward-to-variability = 0.4221 9) std. dev. = 14.21 14) The line connecting two portfolios whose returns are perfectly correlated (worst case) would be a simple straight line. From agehr at mozart.depaul.edu Mon Jan 20 13:22:41 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Yet more problems Message-ID: I've posted a problem set at: http://mozart.depaul.edu/~agehr/335prob.html which covers some of the material we went over in class last week. Ignore problems 6 and 7 for the time being. We will cover that material in class this week. From agehr at mozart.depaul.edu Fri Jan 24 12:12:29 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Problems from Chapter 8 Message-ID: Here are a few problems which review the material we have covered so far in Chapter 8. 1, 3, 4, 8 through 14, 15. Here are the correct answers: 1) i, iii, and iv 3) beta = 1.5 4) $27.37 8) not possible 9) possible 10) not possible 11) not possible 12) not possible 13) not possible 14) possible 15) $109 From agehr at mozart.depaul.edu Mon Jan 13 12:18:25 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Answers to text questions Message-ID: Here are the answers to the text questions I assigned last class. Chapter 5: 1) c 2) b 3) d 4) b 5) a 6) c Chapter 6 1) 100,000x1.05^7=140,710.04 4) mean= 14 std. dev. = 23.24 6) arith. mean = 3.15% geom. mean = 2.33% dollar wtd avg= 0.17% 12) a) mean =14 std. dev. = 18.9 b) a= 18.9%, b = 23.1%, c = 28%, risk-free = 30% c) both = 0.37 13) a) 80% in risky portfolio b) a= 21.6% b = 26.4%, c = 32%, risk-free = 20% c) 21.6% 14) a) y = 0.74074 b) expected return = 14.41% From agehr at mozart.depaul.edu Tue Jan 14 09:18:33 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: test Message-ID: this is a test message to see whether the list is working. From agehr at mozart.depaul.edu Tue Jan 14 13:00:26 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Archive problems Message-ID: There seems to be a problem with the mailing list archive. It's being checked now and I hope we can get the problem resolved today. From scuba09 at msn.com Wed Jan 15 10:04:36 2003 From: scuba09 at msn.com (DEBORAH BESENHOFER) Date: Wed Apr 16 16:11:37 2003 Subject: Question #6 ($ wtd avg) Message-ID: Does anyone have the actual cash flow amts used to get the dollar wtd avg=.17%? I have -300, -220, 90 and 429.25??? and come up with a wtd avg=-.06%. I can't figure out how the answer should be .17%. Debbie Besenhofer -------------- next part -------------- An HTML attachment was scrubbed... URL: http://mailman.depaul.edu/pipermail/fin335/attachments/20030115/1d0a8a46/attachment-0001.htm From aveina2 at hotmail.com Wed Jan 15 10:43:17 2003 From: aveina2 at hotmail.com (Laura Gonzalez) Date: Wed Apr 16 16:11:37 2003 Subject: Chp 6-Problem 12 Message-ID: An HTML attachment was scrubbed... URL: http://mailman.depaul.edu/pipermail/fin335/attachments/20030115/5c4a1cbf/attachment-0001.htm From agehr at mozart.depaul.edu Wed Jan 15 12:02:57 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Question #6 ($ wtd avg) In-Reply-To: Message-ID: You have to calculate in the dividends received every year. For example, after one year you recieve dividends on three shares ($12) and pay 220 for the new shares for a net cash outflow of 208. On Wed, 15 Jan 2003, DEBORAH BESENHOFER wrote: > Does anyone have the actual cash flow amts used to get the dollar wtd avg=.17%? > I have -300, -220, 90 and 429.25??? and come up with a wtd avg=-.06%. I can't figure out how the answer should be .17%. > Debbie Besenhofer > From agehr at mozart.depaul.edu Wed Jan 15 12:05:58 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Chp 6-Problem 12 In-Reply-To: Message-ID: You take a weighted average of the return on the portfolio and the return on the risk-free rate: (fraction in portfolio)x(expected return on portfolio)+(fraction in risk-free security)x)(return on risk free security) On Wed, 15 Jan 2003, Laura Gonzalez wrote: > Can anyone assist with problem #12.  Specifically how the means > were calculated.  Just a and b. >   > thank you > Laura Gonzalez > > __________________________________________________________________________ > > The new MSN 8: smart spam protection and 2 months FREE*. > From agehr at mozart.depaul.edu Wed Jan 15 12:17:35 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: web archive fixed Message-ID: The problem with the web archive has been fixed and all messages (including the text answers) are posted there. From tiffany at brfinc.com Wed Jan 15 13:42:01 2003 From: tiffany at brfinc.com (Tiffany Irving) Date: Wed Apr 16 16:11:37 2003 Subject: Question #6 ($ wtd avg) In-Reply-To: Message-ID: I think I've calculated the correct cash flows, but I get an IRR of -.17% I'm using cash flows, -300, -208, 110, and 396. Any suggestions? Thanks. Tiffany Irving -----Original Message----- From: owner-fin335@forums.depaul.edu [mailto:owner-fin335@forums.depaul.edu]On Behalf Of Adam Gehr Sent: Wednesday, January 15, 2003 12:03 PM To: DEBORAH BESENHOFER Cc: fin335@forums.depaul.edu Subject: Re: Question #6 ($ wtd avg) You have to calculate in the dividends received every year. For example, after one year you recieve dividends on three shares ($12) and pay 220 for the new shares for a net cash outflow of 208. On Wed, 15 Jan 2003, DEBORAH BESENHOFER wrote: > Does anyone have the actual cash flow amts used to get the dollar wtd avg=.17%? > I have -300, -220, 90 and 429.25??? and come up with a wtd avg=-.06%. I can't figure out how the answer should be .17%. > Debbie Besenhofer > From agehr at mozart.depaul.edu Wed Jan 15 13:48:34 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Question #6 ($ wtd avg) In-Reply-To: Message-ID: You're right--there's a typo in the answers. On Wed, 15 Jan 2003, Tiffany Irving wrote: > I think I've calculated the correct cash flows, but I get an IRR of -.17% > I'm using cash flows, -300, -208, 110, and 396. > > Any suggestions? Thanks. > Tiffany Irving > > -----Original Message----- > From: owner-fin335@forums.depaul.edu > [mailto:owner-fin335@forums.depaul.edu]On Behalf Of Adam Gehr > Sent: Wednesday, January 15, 2003 12:03 PM > To: DEBORAH BESENHOFER > Cc: fin335@forums.depaul.edu > Subject: Re: Question #6 ($ wtd avg) > > > You have to calculate in the dividends received every year. For example, > after one year you recieve dividends on three shares ($12) and pay 220 for > the new shares for a net cash outflow of 208. > > > On Wed, 15 Jan 2003, DEBORAH BESENHOFER wrote: > > > Does anyone have the actual cash flow amts used to get the dollar wtd > avg=.17%? > > I have -300, -220, 90 and 429.25??? and come up with a wtd avg=-.06%. I > can't figure out how the answer should be .17%. > > Debbie Besenhofer > > > > > From agehr at mozart.depaul.edu Mon Jan 20 13:19:19 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: answers to problems Message-ID: Here are the answers to the problems I assigned in class last Wednesday. 1) 12.1% 6) min variance mean = 15.83, std dev. = 19.94 7) Tangency mean = 19.37, std. dev. = 24.57 8) reward-to-variability = 0.4221 9) std. dev. = 14.21 14) The line connecting two portfolios whose returns are perfectly correlated (worst case) would be a simple straight line. From agehr at mozart.depaul.edu Mon Jan 20 13:22:41 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Yet more problems Message-ID: I've posted a problem set at: http://mozart.depaul.edu/~agehr/335prob.html which covers some of the material we went over in class last week. Ignore problems 6 and 7 for the time being. We will cover that material in class this week. From agehr at mozart.depaul.edu Fri Jan 24 12:12:29 2003 From: agehr at mozart.depaul.edu (Adam Gehr) Date: Wed Apr 16 16:11:37 2003 Subject: Problems from Chapter 8 Message-ID: Here are a few problems which review the material we have covered so far in Chapter 8. 1, 3, 4, 8 through 14, 15. Here are the correct answers: 1) i, iii, and iv 3) beta = 1.5 4) $27.37 8) not possible 9) possible 10) not possible 11) not possible 12) not possible 13) not possible 14) possible 15) $109