Posted: February 20th, 2015

Intermediate Finance

Paper, Order, or Assignment Requirements

four questions:
1- suppose all stocks had a standard deviation of 25% and a correlation with each other of 0.42. What is the standard deviation of the return on a portfolio that has equal holding in 100 stock? ( i need show the work and the formula)
-written questions:(short answers
1- what is an agency problem?(discuss 3-4 mechanism to prevent agency problem)
2- why covariance is more important in a large well divas red portfolio?
3- discuss why smaller coupon bond is more volatile than large coupon bond?
4- discuss erosion effect.