FINANCIAL MANAGEMENT

TUGAS SESI 3: BAB 6-7

Kelompok 5
Nama : Dewi Amelia
Mirza Zulkarnain
Rieza Sidafril Febianti
Unggul Satriya Anugrah
Kelas : Eksekutif B 39 E

CHAPTER 6: Risk and Return

6-7 a. ri = rRF + (rM - rRF)bi = 9% + (14% - 9%)1.3 = 15.5%.

b. 1. rRF increases to 10%:

rM increases by 1%, from 14% to 15%.

ri = rRF + (rM - rRF)bi = 10% + (15% - 10%)1.3 = 16.5%.

2. rRF decreases to 8%:

rM decreases by 1%, from 14% to 13%.

ri = rRF + (rM - rRF)bi = 8% + (13% - 8%)1.3 = 14.5%.

c. 1. rM increases to 16%:

ri = rRF + (rM - rRF)bi = 9% + (16% - 9%)1.3 = 18.1%.

2. rM decreases to 13%:

ri = rRF + (rM - rRF)bi = 9% + (13% - 9%)1.3 = 14.2%.

6-12

rA rB Portfolio
2006 -18.00 -14.50 -16.25
2007 33.00 21.80 27.40
2008 15.00 30.50 22.75
2009 -0.50 -7.60 -4.05
2010 27.00 26.30 26.65
Average 11.30 11.30 11.30
Std Dev 20.79 20.78 20.13
CV 1.84 1.84 1.78

e. Portfolio would be the right choice for a risk-averse investor compared to Stock A or Stock
B standing alone. This is because the portfolio offers the same expected return but with
less risk. The result occurs because returns on A and B are not perfectly positively
correlated (ρAB = 0.88)
CHAPTER 7: Corporate Valuation and Stock Valuation

7-1 D0 = $1.50; g1-3 = 5%; gn = 10%; D1 - D5 = ?

D1 = D0(1 + g1) = $1.50(1.05) = $1.5750.

D2 = D0(1 + g1)(1 + g2) = $1.50(1.05)2 = $1.6538.

D3 = D0(1 + g1)(1 + g2)(1 + g3) = $1.50(1.05)3 = $1.7364.

D4 = D0(1 + g1)(1 + g2)(1 + g3)(1 + gn) = $1.50(1.05)3(1.10) = $1.9101.

D5 = D0(1 + g1)(1 + g2)(1 + g3)(1 + gn)2 = $1.50(1.05)3(1.10)2 = $2.1011.

7-11 D0 = $1, rS = 7% + 6% = 13%, g1 = 50%, g2 = 25%, gn = 6%

0 1 2 3 4
| | | | |
g1 = 50% g2 = 25% gn = 6%
1.50 1.875 1.9875
1.327 + 28.393 = 1.9875/(0.13 – 0.06)
= 30.268
23.704
$25.03