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You have accessed the s curve above, which cap GDP info is in Euros, i.e.. Euro to $ exchange rate is 1:1 and data is
You have accessed the s curve above, which cap GDP info is in Euros, i.e.. Euro to $ exchange rate is 1:1 and data is relevant to 2020) Prepare an analysis of the market with an indication of its appeal for an insurer like WCP. (d) (i) The bond portfolio detailed below applies to the 2020 year. BOND VALUE 1.1.2020 STANDARD DEVIATION VALUE 31.12.2020 A B D 12,000,000 14,500,000 7,500,000 6,000,000 INTEREST % OF 1.1.20 VALUE 3.5% 4% 6.5% 2% 2,000,000 3,000,000 1,500,000 200,000 12,340,000 14,400,000 8,000,000 6,050,000 6 The sectoral split for this portfolio has A and C in the pharmaceutical industry where a +0.4 correlation exists between them. B and D are in the food and energy exploration industries. The default risk for B is 1% while that for the other bonds is negligible. The guidelines for this portfolio have indicated a realized rate of return of 7% p.a, and a standard deviation of 10%, based on the market values at 1.1.2020. (i) Analyse the performance and risk profile of these bond holdings and suggest recommendations for improvement if these are deemed necessary. You have accessed the s curve above, which cap GDP info is in Euros, i.e.. Euro to $ exchange rate is 1:1 and data is relevant to 2020) Prepare an analysis of the market with an indication of its appeal for an insurer like WCP. (d) (i) The bond portfolio detailed below applies to the 2020 year. BOND VALUE 1.1.2020 STANDARD DEVIATION VALUE 31.12.2020 A B D 12,000,000 14,500,000 7,500,000 6,000,000 INTEREST % OF 1.1.20 VALUE 3.5% 4% 6.5% 2% 2,000,000 3,000,000 1,500,000 200,000 12,340,000 14,400,000 8,000,000 6,050,000 6 The sectoral split for this portfolio has A and C in the pharmaceutical industry where a +0.4 correlation exists between them. B and D are in the food and energy exploration industries. The default risk for B is 1% while that for the other bonds is negligible. The guidelines for this portfolio have indicated a realized rate of return of 7% p.a, and a standard deviation of 10%, based on the market values at 1.1.2020. (i) Analyse the performance and risk profile of these bond holdings and suggest recommendations for improvement if these are deemed necessary
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