corporate finance assigmnet needs to be done on excel

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Answered 2 days AfterFeb 05, 2024

Answer To: corporate finance assigmnet needs to be done on excel

Prince answered on Feb 07 2024
24 Votes
P8-18
    Return
    Year    Asset F    Asset G    Asset H
    2019    16%    17%    14%
    2020    17%    16%    15%
    2021    18%    15%    16%
    2022    19%    14%    17%
    Alternative 1: 100% Asset F
    a. Re
turn    17.5%
    b. Stanadard Deviation    1.12%
    c. Coefficient of variation     6.39%
    Alternative 2: 50% Asset F and 50% Asset G
    a. Return    16.5%
    b. Stanadard Deviation    1.50%
    c. Coefficient of variation     9.09%
    Alternative 3: 50% Asset F and 50% Asset H
    a. Return    16.50%
    b. Stanadard Deviation    1.50%
    c. Coefficient of variation     9.09%
    D. Alternative 1, comprising 100% Asset F, outperformed the other investment alternatives over the period. With a return of 17.5%, it demonstrated the highest yield, coupled with the lowest standard deviation (1.12%) and coefficient of variation (6.39%). These metrics collectively indicate a superior risk-adjusted return compared to Alternatives 2 and 3. While Alternatives 2 and 3 diversified by combining Asset F with other assets, the pure allocation to Asset F in Alternative 1 proved to be the most favorable choice, showcasing higher returns and lower volatility. Investors seeking a balance between risk and return would find Alternative 1 more appealing based on these performance metrics.
P8-28
    Part A.
    Stock    Beta    Rank
    A    0.8    Second Most Risky
    B    1.4    Most Risky
    C    -0.3    Least Risky
    Part B.
    Stock    Beta    % Change in Market Return    % Change in Stock Return    Remarks
    A    0.8    12%    9.60%    Increase in Stock Return
    B    1.4    12%    16.80%    Increase in Stock Return
    C    -0.3    12%    -3.60%    Decrease in Stock Return
    Part C.
    Stock    Beta    % Change in Market Return    % Change in Stock...
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