I want you to write about the function area of
risk management of fuel and exch
I want you to write about the function area of
risk management of fuel and exchange rate.
Which is in the treasury department also add
examples but try to give examples of Qatar airways.
Assume that you won $400 million in the mega million lottery. How much have you
Assume that you won $400 million in the mega million lottery. How much have you really won? In answering this question, consider the concept of the time value of money. Can you write down how much you have won in an equation if you go for the lump sum payout over 20 years? (The problem is very similar to a coupon bond with one key difference)
– The Master’s subject is Finance, Leadership and Management.
– Please prepare a
– The Master’s subject is Finance, Leadership and Management.
– Please prepare a formative assessment (750 words) by following the following instructions: (As a portfolio manager, you need to form a portfolio of five stocks (Choose five stocks from S&P 500 constituent companies so that you can get data easily from Yahoo Finance). Please include the stock that you will choose in lecture 3 (AMZN)to run the Single Index Model. You are free to choose four other stocks. You can find stocks in Yahoo Finance. However, you need to justify why you have chosen those stocks.
You will need Micro forecasts for 5 stocks (Expected return, beta and residual standard deviation). These inputs will come from Single Index model. You need to obtain data from Yahoo finance
You will need the macro forecast for Treasury bills and passive equity portfolio (expected return and standard deviation). Please choose all the stocks from the same market (e.g. UK, US) otherwise you will have problems with respect to Treasury Bills and the passive equity (market) portfolio.
Required:
Calculate expected excess returns, alpha values, and residual variances for these stocks.
Construct the optimal risky portfolio.
What is the Sharpe ratio for the optimal portfolio?
By how much did the position in the active portfolio improve the Sharpe ratio compared to a purely passive index strategy?
What should be the exact makeup of the complete portfolio (including the risk-free asset) be for an investor with a coefficient of risk aversion of 3?
You will need to submit an excel file showing all the calculations.
Submit a report justifying your choice of 5 stocks and showing the above calculations (in excel).
– please use an accurate subject;
– Please rely on the uploaded resources and use other resources as well.
– Please use the Harvard referencing style to cite books, articles, and
other sources like websites.
– Do not use AI as the University has an AI deductor.
– Please share the draft with me two days before the deadline.
Purpose:
The purpose of this assignment is to provide students with an opportuni
Purpose:
The purpose of this assignment is to provide students with an opportunity
to develop a short case study and analysis of an issue related to money and
banking using concepts and theories learned in class.
Description:
Select an article on an economic topic from a major newspaper or business
journal (e.g., The Economist, Wall Street Journal, New York Times) dated within
the previous two months and analyze the issue using the economic concepts and
theory learned in class. Possible topics include:
·
Quantitative Easing
·
Money supply
·
Monetary policy
·
Policies of current or past Fed Chairman
·
Inflation Control
·
Deflation
·
Raising interest rates (Use this one)
The paper should begin with a concise summary paragraph that (1) states
the problem/issue/topic you have selected and (2) summarizes your position on
the topic, anticipating your conclusion.
The remainder of the paper should explain and support your position.
Specifications:
Your paper should include:
·
A narrative of up to 3 pages (not
including title page, reference list, or appendices).
·
A title page
·
A reference list (using APA format) with
at least three sources, and
·
At least one graph and/or table
·
In addition, at the conclusion of your
paper please include a brief statement reflecting on what you feel you have
learned from the assignment and how that learning may be applied to your life
or work going forward.
Please use
APA format in-text citations for all facts and figures in the body of your
paper and proof your paper for grammar and spelling.
Chapter 16 – Capital Structure Topics
From the lecture notes on the procedures a
Chapter 16 – Capital Structure Topics
From the lecture notes on the procedures and conditions for constructing a successful Capital Structure Arbitrage (ref: LN p.15):
Calculate VU ; SL ; B ; and VL
Determine the direction of relative misvaluation of Firm U versus Firm L
Construct the Capital Structure Arbitrage strategy to reap the (positive) arbitrage profit associated with the relative misvaluation of the two firms by taking the appropriate opposite positions in the EQUITY of the two firms along with the homemade leverage/unleverage with ZERO up-front investment, i.e., the first condition! And make sure that your homemade leverage/unleverage matches the corporate leverage, i.e., the debt-to-equity ratio.
Show that there is ZERO net cash flow generated from your arbitrage portfolio afterwards, i.e., the second condition!
(Mandatory) Learning Exercise Problem
Consider an unlevered firm (U) that generates annual EBIT of $500,000 perpetually.
Firm U has 115,000 shares outstanding and is valued at $4.6 million. An otherwise
identical levered firm (L) carries $1.5 million debt, which is valued at par, with a cost
of borrowing at 8%. Firm L’s equity is valued for $2.8 million. Assume 20% ownership of the firm. Demonstrate
numerically in clear and explicit steps how you conduct a successful Capital
Structure Arbitrage that captures the arbitrage profit implied in the relative
misvaluation of the two firms in spreadsheet form. Precisely explain your rationale for the use of
homemade leverage or unleverage (select the correct choice) in your analysis.
This is a good representation of the examination problem on this important topic! I
strongly recommend you all to work through this exercise and look forward to
reading your work posted on Chapter 16 forum
Example Solution: Please see attachment provided.
A
company with $200,000 initial endowment has the following investment
opportuni
A
company with $200,000 initial endowment has the following investment
opportunities available:
Project
I1 X2
1
$150,000 $180,000
2
$125,000 $140,000
3
$160,000 $175,000
4
$55,000 $70,000
Assuming perfect certainty, perfect capital
markets, rational investors, a two-period world, and a
market rate of 15%, answer the following
questions:
a. If the firm applies capital rationing such
that it does not invest more than its initial endowment:
i. Which proposals should the firm undertake and
why?
ii. What is the value of the firm after
investing?
iii. If the firm pays a period 1 dividend of
$40,000 and invests surplus period 1 funds in the
market, how does the change in dividend policy
affect firm value?
b. If there is no capital rationing such that
the firm raises additional funds for investment:
i. Which projects should the firm undertake and
why?
ii. What is the value of the firm after
investing?
iii. If the firm pays a period 1 dividend of
$95,000 by raising additional funds from the market,
what is the value of the firm after changing its
financing policy
I want you to write about the function area of
risk management of fuel and exch
I want you to write about the function area of
risk management of fuel and exchange rate.
Which is in the treasury department also add
examples but try to give examples of Qatar airways.
Need to do 3 Posts.
1. The First Post’s samples are attached in the “2-sample of
Need to do 3 Posts.
1. The First Post’s samples are attached in the “2-sample of first…” file.
You need Do it according to the Assessment requirement：
You are required to create two visualisations:
1) the Excel “recommended graph”, and
2) an improved, more thoughtful version of the same visualisation which enhances key insights
you wish to communicate.
You must also explain what you did to improve it and why, referring to any external materials
you used to help you with this (maximum 200 words – informal references are acceptable).
2.The 2nd and 3rd Posts requirement is attached in the “3-2nd…” file.
In the above is classmate’s post. You need to write a 100 words comment for each one.
So the total is 2 comments = 100 words *2
The below are others comment. You can see them as samples.
Answer the following corporate finance questions correctly.
For 3 questions y
Answer the following corporate finance questions correctly.
For 3 questions you would need the pdf to see the data table
Overview:
You are an investment manager presented with a list of three new clien
Overview:
You are an investment manager presented with a list of three new clients who have signed up for your firm’s services. As part of your responsibilities, you will assume the management of one of those three clients. Using your knowledge of investments combined with contemporary market factors, you will evaluate that client’s existing financial conditions and investments. You will also evaluate their future goals and the overall economic and market conditions. You will then recommend specific investment options based on those factors and the client’s risk tolerance.
As a first step toward the future portfolio, you must evaluate the selected client’s existing portfolio performance. A deeper understanding of the client’s existing portfolio starts with an inventory overview of the existing assets and how those assets have performed. A quantitative analysis of past performance helps the investment manager establish a point of reference, determine what the conditions are now, if the conditions align with the client’s goals and risk tolerance, and eventually how existing assets must be changed in the future. As a portfolio manager, you can’t guide your clients forward until you know where they stand now.
Directions:
Choose one of the three profiles from the Project Profiles found in the Supporting Materials section. Use the profile desсrіption and the information compiled in the Project Template to evaluate the performance of the client’s existing investments over the last year, the performance of the client’s existing investment versus appropriate benchmarks, and the performance of the investments on a risk-adjusted basis. Then, discuss your findings in a written summary.
Calculations: Complete the required calculations on the Project Template.
1. As a first step, look up the U.S. Treasury 10-year bond rate and enter it in Cell D6. This is considered the market standard definition of “risk free rate.”
2. The investments, ticker, dollar amounts, and weights have already been generated for each profile and should be left unchanged.
3. Enter the last business closing day dollar price for each investment in column G. Note that cash and CD will not have any closing prices.
4. Enter the business closing day dollar price one year ago from the date in column G for each investment in column H. Note that cash and CD will not have any closing prices.
5. In Column I, Annual Return will be automatically calculated as you complete columns G and H.
6. Any return generated must be considered in excess of what could have been earned without taking on market (credit risk), as in investing in the risk-free U.S. Government bond. Column J, Risk Adjusted Return, automatically calculates the difference between annual return and return generated from U.S. Government Bond.
7. Five-year annual return can be calculated manually, where for simplicity you assume the asset was held in each prior five years, with the beginning year price as P1, the end year price as P2, and the annual return calculated as (P2-P1)/P1, and then multiplied by 100 to be converted to %. Once you have the annual rate of return divided for each year, you add the five-year return and divide by five. Also, you can look up the five-year annual return from any financial search engine by looking up the ticker.
Summary: Create a written 3- to 4-page summary that is supported by appropriate calculations completed on the Project Template.
1. Each investment return must also be compared to a comparable benchmark to assess if the investment has over- or underperformed during the last 12 months. You can compare the last 12-month return of your investment to the last 12-month return of a bond index when the investment is a bond, a large stock market index when the investment is a stock, or individual stocks when the investment is a stock, and so on. Find a comparable benchmark and enter the difference between the portfolio investment’s return and the benchmark in column L.
Specifically, you must address the following rubric criteria:
• Analyze past portfolio performance. Include the following in your calculations:
o Quantitative assessments from:
Annual return
Risk-adjusted return
Five-year return
Annual return versus appropriate benchmark
• Compare portfolio investments to relevant benchmarks. Include the following in your calculations and summary:
o Identify benchmarks for existing investments to be compared to, and identify the reason for benchmark selection.
o Discuss return data on investments within the portfolio.
o Identify over- and underperforming investments in relation to each benchmark.
What to Submit:
Current Portfolio Evaluation
This milestone requires two deliverables. Submit the completed Project Template and a 2- to 3-page Microsoft Word document to support planned adjustments within the future rebalancing of the portfolio. Use 12-point Times New Roman font, double spacing, and one-inch margins. Sources should be cited according to APA style.
Your supporting research should be as up to date as possible. Any news stories, press releases, or other sources must be dated within the last 60 days. Company data should be no more than one year old. Using older data may result in being asked to resubmit your work.
Supporting Materials:
The following resources may help support your work on the project:
-Profile Options: Project Profiles
Select one of the three profile options to create your rebalanced portfolio.
-Template: Project Template
Use this Excel template to create your rebalanced portfolio.