FINE 441 Lecture Notes - Lecture 3: Daimler-Benz, Efficient Frontier, Capital Asset Pricing Model
15 Dec 2015
School
Department
Course
Professor
Document Summary
Write your name and student number in the space provided above. Outline solutions and indicate intermediate steps and supporting calculations. Partial credit will be awarded if you provide sufficient evidence of approaching the problem correctly. The value of a derivative security a) b) c) d) e) The discount yield on a t-bill is 5%. What is the price of the bill if it matures in. 60 days and has a face value of ,000? a) b) c) d) e) A t-bill has a face value of ,000 and is selling for ,800. If the t-bill matures in 90 days, what is its effective annual yield? a) b) c) d) e) A portfolio has an expected rate of return of 0. 15 and a standard deviation of. ,523. 81 none of the above cannot be determined. Which value of a make this investor indifferent between the risky portfolio and the risk-free asset? a) b) c) d) e)
