1. D

    Mininum Variance Portfolio of Two Risky Assets

    So I have a question: I need to derive an expression for the share of wealth allocated to Asset 1 in a portfolio that has the minimum possible variance. The following is known: Two risky assets: 1 and 2 Returns: r1 and r2 Variance: σ12 and σ22 Covariance: σ12...
  2. A

    Finding Payout Ratio - Finance

    Fin-Tech, a finance and technology firm, floated its shares today. The IPO prospectus notesthat Fin-Tech does not plan to pay any dividend in the foreseeable future and reported annualearnings of $4 per share (this is the earning as of today). Fin-Tech’s Return on Equity is 15%and expected to...
  3. K

    Income statement Forcasting

    Sales are forecast to increase by 15% in 2015. Short-term Debt and Common Stock will not change. Net Plant and Equipment is forecasted to be $950 next year. Depreciation Expense in 2015 is expected to be $350. In 2015, the company the dividend payout ratio will be 90%. In 2015, cost of goods...
  4. S

    Decision Tree Problem

    Hey guys, small doubt with regards to a decision tree. High: 0.3 $450,000 per annum for two years Medium: 0.4 $550,000 per annum for two years Low: 0.3 $480,000 per annum for two years So, in this...
  5. B

    Value Betting and the Kelly Criterion

    Hi all, Just found this forum online and it seems like a great resource. I just need a little help with a new betting system I am putting together and would really appreciate if anyone could oblige. I am currently designing a system that combines value bets from a number of private, paid and...
  6. I

    Prices chosen in an isolated optimization of contribution margin!?

    The question is: A bartender sells Whiskey(W) and Beer(B). He assumes the following price-demand functions, where X represents one liter of each beverage and P represents the price of the beverage: X(w) = 15,000 - 1000(Pw) + 100(Pb) X(b) = 9,000 - 500(Pb) + 50(Pw) Variable cost of 1 liter of...
  7. K

    DIFFUSION MODELS - good literature

    Hej, can someone recommend me any books related to the use of diffusion models in finance (bass model in particular) ? I'm begging for some help.
  8. S

    Finance and formulas

    I could use some help with these so that I can check my work! I've worked #1 but not sure if its correct. Thank you!! 1) 12,000 dollars is deposited into a savings account paying .03 interest. After 4 years, how much money will I have? FV = 12,000 (1.126) 3%, 4 yrs = $13,512 2) Bill plans to...
  9. DexterOnline2

    The New Finance Bible reveals 4880 TVM formulas

    Christmas 2014 will be a joyous day for seekers of financial fortune as the Lord hath revealed the hidden 4880 time value of money formulas for the believers seeking enlightenment To my friends Sir Jonah and Sir JeffM and with respect to my mentor Sir Wilmer, I will disclose the word of Lord...
  10. S

    Finance - finding payout ratio

    Hi, my question is as follows: The Chinese e-commerce company Alibaba Group floated its share in the biggest IPO in US history. Alibaba Group priced its shares at 68 dollars raising 21.8 billion dollars and valuing the company at 167.6 billion dollars. The IPO prospectus notes that Alibaba does...
  11. J

    Percentage and Price

    A bond pays 100 coupons and it measures in 4 years. If investors require 10% return on thin investment, what is the bond price?
  12. S

    Techniques and elements of Finance

  13. J

    Finance HW Help :)

    Figured it out :)
  14. D

    Finance (payments) question

    ZDX borrows $50,000 under a two-year loan agreement at an annual interest rate of 8 percent. The payment schedule calls for 2 equal annual end-of-year payments. To the nearest penny, what is the annual total payment that ZDX must make? I'm not sure if I have to use an annuity formula or if I...
  15. E

    Probability and statistics for finance

    Hey! I've got question. Is anyone able to solve/explain to me these two questions? I have an exam in following week, and I have noone else to ask. Enclosed files are from last exam and I feel that this time questions will be similar. Thanks in advance!
  16. M

    Farkas Lemma and its importance in the context of arbitrage theory (Finance)

    Good morning everybody, I have an oral exam soon and the question "Explain Farkas Lemma and its importance in the context of arbitrage theory" is a probable question which will come up... As I missed that lecture, and the notes are not self-explanatory....does somebody have a suggestion what...
  17. O

    mathematics in finance

    The question in my book is so vague I don't understand it ??? I don't even know what formula to us for this is have a list of formulas too. How long will it take money to double if it is invested at 7.5% compounded daily? 7.5% compounded annually?
  18. M

    Auto Finance Formulas

    Hello, I am trying determine the mathematical formulas used in an online auto loan calculator. The loan calculator is located here, and has 4 different tabs with different calculations: ... anCalc.jsp - "Auto Loan Calculator" - "Affordability" -...
  19. M

    Macauley's duration formula, proof and dedution needed-Finance economics

    I am searching for deduction step by step of Macauly's duartion formula, or its special form that looks like this: D= {(1+Y)/Y - [1+Y+T(c-Y)]/[(c(1+Y)^T-1))+Y]} where : D-duration Y-yield to maturity rate c-coupon rate T-elapsed time to yield to maturity I need this formula explained step by...