Calculate john’s portfolio weights and returns

Assignment Help Finance Basics
Reference no: EM131414239

John invests $10,000 in IBM stock with a $3 annual dividend selling at $100 per share, and $15,000 in real estate partnership shares with $6 annual rental income at $25 per share. The following year, IBM stock is trading at $104 per share while the real estate shares trade at $23.50. Calculate John's portfolio weights and returns.

Reference no: EM131414239

Questions Cloud

What is the average return per year for the two year period : Sara decides to buy a 6 percent, 10-year straight coupon bond for $100, which pays annual coupons of $6 at the end of each year. At the end of the first year, the bond is trading at $115. At the end of the second year, the bond trades at $100.
How does this study apply to the real world : What was the purpose of this study?How does this study apply to the real world?If you were doing the next step in this study, which research question would you develop? How could you test it?How could you apply the steps of the scientific method to t..
Find the portfolio weights for the two stocks : If the ratio of the return variances of stock A to stock B is denoted by q, find the portfolio weights for the two stocks that generate a riskless portfolio
Discuss key advantage and disadvantages of organic expansion : Discuss the key advantages and disadvantages of organic expansion and each of the listed forms of business combination for an international expansion. Support your views with relevant examples.
Calculate john’s portfolio weights and returns : The following year, IBM stock is trading at $104 per share while the real estate shares trade at $23.50. Calculate John's portfolio weights and returns.
Explain the difference between science and technology : Science is the study of how the universe works using the scientific method as a framework for asking questions. Throughout history, humans have built up a body of scientific knowledge and have used this knowledge to develop technologies to make li..
What are the characteristics of lenovos culture : What strategies does Lenovo employ to maximize company efficiency and flexibility? What are the characteristics of Lenovo's culture? How does the culture help Lenovo achieve its international goals?
Compute the return variance of the $4 billion in abco stock : Assuming that the three economic scenarios are equally likely, compute the return variance of the $4 billion in ABCO stock for each of the six possible pairs of subsidiaries remaining.
Write attributes from your personal and cultural background : Being familiar with the personal and cultural background of clients can help social workers better evaluate a client problem or develop an intervention. In particular, it is important for social workers to have some understanding of the cultural b..

Reviews

Write a Review

Finance Basics Questions & Answers

  Evaluate projects with the same level of risk

Calculate the discount rate the firm should use to evaluate projects with the same level of risk as the firm

  What is the current dividend per share

You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share?

  Which bond would you expect to be calledexplain

Which bond would you expect to be called? Explain.

  Calculate next year ending receivables balance

Receivables are currently $15M on credit sales of $120M Credit sales are expected to grow by 20% next year. Calculate next year's ending receivables balance (make calculations using ending balances and a 360 day year).

  Relaxation of credit standards

Lewis corporation is planning relaxing its credit standards to increase its currently sagging sales. As a result of the proposed relaxation, sales are expected to increase through 10 percent from 10,000 to 11,000 units during the coming year.

  Nbsp1 the us financial system is composed of 1 policy

nbsp1. the u.s. financial system is composed of 1 policy makers 2 a monetary system 3 financial institutions and 4

  What is the required return

Lane, Inc., has an issue of preferred stock outstanding that pays a dividend of $4.75 dividend every year in perpetuity. If the issue currently sells for $93, what is the required return?

  Your broker concluded that if they were well-managed they

in a recent discussion with you your broker commented that well-managed firms are not necessarily more profitable than

  Calculate the payback period

For both the Standard and the Deluxe machines, calculate the payback period.

  Find required additional external capital

The Landis Company had 2004 sales of $100 million. The balance sheet items that vary directly with sales and the profit margin are as follows:

  Computation of future annual payments

Computation of future annual payments and how much income will the grandchild receive each year

  Business risk and financial risk using mm capital

Explain what is meant by business risk and financial risk using MM capital structure theory.

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