Need som help with this question, parts a, b, c, d only.
Thanks
INTEGRATED CASE MERRILL FINCH INC. RISK AND RETURN Assume that you recently graduated with a major in finance. You just landed a job financial planner with Merril Finch Inc, a large financial services corporation. Your first assignment invest $100,000 for a client. Because the funds are to be invested in a business at the end of 1 year, y been instructed to plan for a 1-year holding period. Further, your boss has restricted you to the investnt alternatives in the following table, shown wi disregard the items at the bottom of the data; you will fill in the blanks later.) is to ou have th their probabilities and associated outc omes. (For now, Returns on Alternative Investments Estimated Rate of Return State of the Economy Recession Below average Average Above average Boom High Tech Market Two-Stock Portfolio Portfolio U.S Probability T-Bills Collections Rubber 3.0% 3.0 3.0 3.0 3.0 (29.5%) (9.5) 12.5 27.5 42.5 245% 10.5 3.596" (19.5%) (2.5%) 0.2 (16.5) 0.5 38.5 23.5 (5.5) 7.5 22.5 35.5 0.2 (5.0) (20.0) 11.3 1.2% 7.3% 18.8 2.6 0.88 8.090 0.0 11.2 15.2 CV 9.8 0.50 Note: The est the economy is the economy is in timated returns of U.S. Rubber do not always move in the same direction as the overall economy. Fo omy is in a flat-out recession, a large number of consumers who were planning to purchase a new owever, if as stronger ait and instead purchase new tires for the car they currently own. Under these circumstances, we wo to w Rubber's stock price to be higher if there is a recession than if the economy is just below average. would expect US. INTEGRATED CASE MERRILL FINCH INC. RISK AND RETURN Assume that you recently graduated with a major in finance. You just landed a job financial planner with Merril Finch Inc, a large financial services corporation. Your first assignment invest $100,000 for a client. Because the funds are to be invested in a business at the end of 1 year, y been instructed to plan for a 1-year holding period. Further, your boss has restricted you to the investnt alternatives in the following table, shown wi disregard the items at the bottom of the data; you will fill in the blanks later.) is to ou have th their probabilities and associated outc omes. (For now, Returns on Alternative Investments Estimated Rate of Return State of the Economy Recession Below average Average Above average Boom High Tech Market Two-Stock Portfolio Portfolio U.S Probability T-Bills Collections Rubber 3.0% 3.0 3.0 3.0 3.0 (29.5%) (9.5) 12.5 27.5 42.5 245% 10.5 3.596" (19.5%) (2.5%) 0.2 (16.5) 0.5 38.5 23.5 (5.5) 7.5 22.5 35.5 0.2 (5.0) (20.0) 11.3 1.2% 7.3% 18.8 2.6 0.88 8.090 0.0 11.2 15.2 CV 9.8 0.50 Note: The est the economy is the economy is in timated returns of U.S. Rubber do not always move in the same direction as the overall economy. Fo omy is in a flat-out recession, a large number of consumers who were planning to purchase a new owever, if as stronger ait and instead purchase new tires for the car they currently own. Under these circumstances, we wo to w Rubber's stock price to be higher if there is a recession than if the economy is just below average. would expect US
