About the expected return on the portfolio

Assignment Help Financial Management
Reference no: EM13883161

You own a portfolio that is 38 percent invested in Stock X, 22 percent in Stock Y, and 40 percent in Stock Z. The expected returns on these three stocks are 10 percent, 15 percent, and 12 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Portfolio expected return %

Reference no: EM13883161

Questions Cloud

What will the annual payments have to be : You need to save $50,000 in 10 years from today. You want to make annual payments at the end of each year into a sinking fund that will earn interest at an annual rate of 10 percent. What will the annual payments have to be? Suppose that the borrower..
About the life insurance policy : Theo is a consultant who earns 72,000$ annually. His wife, Julia is a homemaker and theey have one child, Ben. Theo is covered by 200,000$ life insurance policy. The couple assumes an annual inflation rate of 3%. How would you design a finance plan f..
Expansion project-requires an initial fixed asset investment : Quad Enterprises is considering a new three-year expansion project that requires an initial fixed asset investment of $2.94 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life, after which time it will be w..
Calculate work life expectancy : Juan, married and a father of 4 is 45 and expects to work until 65. he earns 70,000$ a year and expects an increase annually of 5%. Juan expects inflation to be 4% over his working life. His personal consumption is earl to 10% after tax earning and h..
About the expected return on the portfolio : You own a portfolio that is 38 percent invested in Stock X, 22 percent in Stock Y, and 40 percent in Stock Z. The expected returns on these three stocks are 10 percent, 15 percent, and 12 percent, respectively. What is the expected return on the port..
What must the coupon rate be on the companys bonds : Ghost Rider Corporation has bonds on the market with 10 years to maturity, a YTM of 6.5 percent, and a current price of $926. What must the coupon rate be on the company’s bonds?
The annual sales figure when evaluating this project : Winnebagel Corp. currently sells 24,000 motor homes per year at $62,000 each, and 9,000 luxury motor coaches per year at $99,000 each. The company wants to introduce a new portable camper to fill out its product line; it hopes to sell 19,000 of these..
What is the invoice price of the bond : How would i solve this by hand without excel or financial calc? Consider a bond with a settlement date of 01/19/1994. The maturity of the bond is March 15, 2021. The coupon rate is 5.5%. If the yield to maturity of the bond is 5.34% (bond equivalent ..
What impact would the new capital structure : Seattle Health Plans currently uses zero-debt financing. Its operating income (EBIT) is $1 million, and it pays taxes at a 40% rate. It has $5 million in assets and, because it is all-equity financed, $5 million in equity. What impact would the new c..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the loans effective annual rate

A credit card is offered with monthly payments and a 21.99% APR. What is the loan's effective annual rate (EAR)?

  Time for a lump sum to double

How long will it take $200 to double if it is deposited and earns the following rates? Round your answers to the closest year. [Notes: (1) This problem cannot be solved exactly with some financial calculators.

  New project-generate after-tax cash flows

Suppose Klausenheimer, Inc. is considering a new project. The project alone will cost $50,000,000 and is expected to generate after-tax cash flows of $5,000,000, $6,000,000 and 7,000,000 during the first three years. Assuming Klausenheimer has a corp..

  What is the cds effective rate

Security National Bank is quoting 1-year certificates of deposit with an interest rate of 6% compounded semi annually. Joe Saver purchased a $5,700 CD. What is the CD’s effective rate (APY)?

  Global financing operations-importance in managing risks

I need to explain currency hedging and explain how currency hedging is used in global financing operations and describe it importance in managing risks

  P-E Ratio and Stock Price International Business Machines

P/E Ratio and Stock Price International Business Machines (IBM) has earnings per share of $6.90 and a P/E ratio of 15.20. What is the stock price?

  What is your portfolio return

Portfolio Return At the beginning of the month, you owned $6,200 of Company G, $8,500 of Company S, and $2,000 of Company N. The monthly returns for Company G, Company S, and Company N were 7.75 percent, -1.55 percent, and -.18 percent. What is your ..

  Compute earings per share for the year

Frantic Fast Foods had earnings after taxes of $420,000 in 2012 with 309,000 shares outstanding. On January 1, 2013, the firm issued 20,000 new shares. Because of the proceeds from these new shares and other operating improvements, earings after taxe..

  Constant dividend-return on your equity investments

Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $2.10 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a 12.60 per..

  Using the profitability index when evaluating projects

Gold Mining, Inc. is using the profitability index (PI) when evaluating projects. Gold Mining’s cost of capital is 8.75 percent. What is the PI of a project if the initial costs are $2,371,020 and the project life is estimated as 9 years? The project..

  Rent the current machine and rent the advanced machine

Beryl’s Iced Tea currently rents a bottling machine for $55,000 per year, including all maintenance expenses. It is considering purchasing a machine instead, and is comparing two options: Purchase the machine it is currently renting for $150,000. Thi..

  Equity account on the balance sheet and earnings

What is the relationship between the equity account on the Balance Sheet and Earnings (Net Income) reported on the Income Statement?

Free Assignment Quote

Assured A++ Grade

Get guaranteed satisfaction & time on delivery in every assignment order you paid with us! We ensure premium quality solution document along with free turntin report!

All rights reserved! Copyrights ©2019-2020 ExpertsMind IT Educational Pvt Ltd