Identify each of the following as a synthesis reaction (S),…

Identify each of the following as a synthesis reaction (S), decomposition reaction (D), combustion reaction (C), single replacement reaction (1), or double replacement reaction (2).   2S + 3O2 –>  2SO3 BaCl2 + 2AgNO3 –>  2AgCl+ Ba(NO3)22 KClO3 –>  2KCl + 3O2Cu + 2AgNO3  –>  2Ag + Cu(NO3)2CH4 + 2O2 –> CO2 + 2H2O

Using historical data from the last 30 years, a researcher e…

Using historical data from the last 30 years, a researcher examined the returns of actively managed mutual funds and estimated the alphas generated by these funds using the Fama-French 3 Factor Model.  Below is a frequency distribution of those alphas.  In your opinion, what does this evidence say about market efficiency? (7 points)

Below are three stocks with their expected returns and betas…

Below are three stocks with their expected returns and betas.  T-bills yield 4%. Stock E(r) Beta X .08 1 Y .12 2 Z .14 3 Does this data suggest an arbitrage opportunity?  If so, devise a strategy to exploit this opportunity and be detailed about how and why this strategy could deliver arbitrage profits. (7 points)

You must analyze the forecasted risk and cash flows of a pro…

You must analyze the forecasted risk and cash flows of a project at your firm to determine if it is a smart investment.  The cost of the project is $120 million today.  The forecasted cash flows at the end of each of the next 6 years are $30 million.  The project’s beta is 1.8.  Assume the risk-free rate is 3% and the expected return on the market is 13%.  a)  What is the net present value of the project? (5 points) b)  You recognize that your forecast of project beta could be in error, so you perform some additional analysis.  Determine how high the beta could be and still generate a zero NPV.  (5 points)