The Term Structure of Interest Rates – Accounting & Finance Assignment Help

Assignment Task


The Term Structure of Interest Rates

A-Plus Writing Help For University Students

Get expert assistance in any academic field. All courses and programs covered.

Get Help Now!

1.(a) Flow does the expectations hypothesis differ from the segmentation hypothesis as a theory of the term structure of interest rates?

(b) Your portfolio is valued at $300 and tracks an equity index currently standing at 100. You wish to use put options on the index to eliminate the possibility that the portfolio value goes below $400 in 12 menthe time. while at the same time retain as much as possible of the *side risk. The risk-free interest rate is 4% over the 12 months. Foe options on the index with an exercise price of S80. a 12.month call option is worth $27.07 per $100 worth of the underlying. and a 12-month put option is worth $3.99 per $100 worth of the underlying.

  • What are the details of your put-protection strategy?
  • What is the value of your oven!l portfolio if the equity index rises by 10%?

(c) The expected return on a portfolio is 11%. with variance 22%. The beta of the portfolio is 0.8. The expected return on the market index is 10%. with variance 12%. and the risk-free rate is 3%.
What is the hi-squared measure. the Sharpe ratio, the Treynor ratio. and the Jensen’s alpha for the portfolio? Is the portfolio attractive?

2.(a) Contrast the actual performance of fund managers with that expected from the Efficient Markets Hypothesis.

(b) You short 800 shares. The initial price of the shares is 100. and the shares pay a dividend at the end of the first year of 15per share. The price of the shares (ex-dividend) at the end of the first year is 110. and you buy back 200 shares at this point. The dividend at the end of the second year 20 pa share. The price of the shares (ex4ividend) at the end of the second year is 90. and you clear your position by buying back the remaining shares as the end of the second year. The initial and maintenance margin is 70%.
Assuming you maintain the minimum margin requirements at all times. what is the 2•nat return on your short sale transaction?

This Accounting & Finance Assignment has been solved by our Accounting & Finance Expert at TV Assignment Help. Our Assignment Writing Experts are efficient to provide a fresh solution to this question. We are serving more than 10000+ Students in Australia, UK & US by helping them to score HD in their academics. Our Experts are well trained to follow all marking rubrics & referencing Style. Be it a used or new solution, the quality of the work submitted by our assignment experts remains unhampered. 

You may continue to expect the same or even better quality with the used and new assignment solution files respectively. There’s one thing to be noticed that you could choose one between the two and acquire an HD either way. You could choose a new assignment solution file to get yourself an exclusive, plagiarism (with free Turn tin file), expert quality assignment or order an old solution file that was considered worthy of the highest distinction.

Welcome to our Online Essay Writing Agency. Securing higher grades costing your pocket? Order your assignment online at the lowest price now! Our online essay writers are able to provide high-quality assignment help within your deadline. With our homework writing company, you can order essays, term papers, research papers, capstone projects, movie review, presentation, annotated bibliography, reaction paper, research proposal, discussion, or another assignment without having to worry about its originality – we offer 100% original content written completely from scratch

We write papers within your selected deadline. Just share the instructions