used to position the portfolio for a change in economic conditions. Specifically, discuss what a portfolio manager could do if they expect economic conditions (increasing default rates and widening credit spreads) to deteriorate. Refer to the current economic climate and discuss why maximisation/minimisation optimisation methods don't often work in reality?
Compute the following based on the table presented: Market Value TodayReturn on AssetsReturn on EquityLoan Constant
Construction Loan Interest