Calculate the expected return of portfolio

Assignment Help Financial Management
Reference no: EM13928035

Mary holds a portfolio with the following securities:

Security                  Percent of portfolio                 Return

Stock A                    30%                                       -6.4%

Stock B                     20%                                        13.0%

Stock C                   Please calculate it                     5.0%

Calculate the expected return of portfolio. Round the answer to two decimal places in percentage form.

Reference no: EM13928035

Questions Cloud

Interested in building a movie recommendation system : Suppose an online media streaming company is interested in build- ing a movie recommendation system. The website maintains data on the movies in their database (genre, length, cast, director, budget, etc.) and additionally collects data from their su..
What is their break-even level of operating income : Home Depot, Inc. (HD) had 1.70 billion shares of common stock outstanding in 2008, wheras Lowes Companies, Inc. (LOW) had 1.46 billion shares outstanding. Assuming Home Depot's 2008 interest expense is $696 million, Lowes' interest expense is $239 mi..
What is standard deviation rounded to nearest whole number : You are given the following probability distribution of returns for stock J: A probability of .2 that the return will be 12%; a probability of .35 that the return will be 18%; a probability of .3 that the return will be -10%; and a probability of .15..
What is annualized holding period return : Jack purchased 100 shares of Green Forest Inc. stock at a price of $157.65 three months ago. He sold all stocks today for $158.57. During this period the stock paid dividends of $5.67 per share. What is Jack's annualized holding period return (annual..
Calculate the expected return of portfolio : Mary holds a portfolio with the following securities: Calculate the expected return of portfolio. Round the answer to two decimal places in percentage form.
Random returns for two well–diversified portfolios : Random returns for two well–diversified portfolios at time t are given by: Construct factor portfolio for factor 1 by combining portfolios A, B, and T-bills. What are the weights of these portfolios in factor portfolio 1? What is the expected return ..
In divisional income statements prepared : In divisional income statements prepared for Wilborne Construction Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll checks, and the Purchasing Department costs are charged back on the basi..
What are the possible reasons for the trend : What does the calculation of each ratio represent? How does year one compare with year two, and what trend can be seen when you compare the two years? Is the trend from year one to year two positive or negative? What are the possible reasons for the ..
What does the calculation of each ratio represent : What does the calculation of each ratio represent? How does year one compare with year two, and what trend can be seen when you compare the two years? Is the trend from year one to year two positive or negative? What are the possible reasons for the ..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate implied annual interest rate on futures contract

A Treasury bond futures contract settles at 105'8. What is the present value of the futures contract in dollars? Calculate the implied annual interest rate on the futures contract? Calculate the new value of the futures contract if interest rates inc..

  What is the future value of the cash flows five years

Consider the following cash flow: Year Cash Flow 2) $22,300 3)$40,300 5) $58,300. Assume an interest rate of 9.1 percent per year. what is the future value of the cash flows five years from now?

  Calculate after tax cost of debt expressed as percentage

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semi annual interest payments. Bond A has a coupon rate..

  What is the amount of the projected cash disbursements

The firm X has a 45 day accounts payable period. The firm has expected sales of $1,800, $2,500, $2,600 and $2,800, respectively, by quarter for the next calendar year. The cost of goods sold for a quarter is equal to 55% of the next quarter sales. Wh..

  Explain how and why the dividend growth model

Thompsen Enterprises is a rapidly growing firm that reinvests all of its income into future projects. Thus, the firm does not pay any dividends, nor does it intend to do so any time in the future. Explain how and why the dividend growth model can or ..

  What is jensens cost of preferred stock

Jensen's Travel Agency has 8 percent preferred stock outstanding that is currently selling for $55 a share. The market rate of return is 10 percent and the firm's tax rate is 34 percent. What is Jensen's cost of preferred stock?

  Calculate a table of interest rates based

Calculate a table of interest rates based on the following information:

  Were the same business drivers discussed

Present a brief side-by-side comparison of MacDonald’s MD&A of 2013 to that of 2012. Were the same business drivers discussed? Were they assigned the same importance by management? Discuss any variations you observed, and the possible reasons for man..

  Write an apa style paper outlining effects of financial plan

Write an APA style paper outlining the effects of financial planning, governance and ethical issues in modern economies.

  Depreciated on straight-line basis to net book value of zero

Rocky Mountain Chemical Corporation (RMC) is thinking of replacing the packaging machines in its Texas plant. Each packaging machine currently in use has a net book value of $1 million and will continue to be depreciated on a straight-line basis to a..

  What are the methods for estimating debit cost of capital

What are the methods for estimating debit cost of capital, and what do you do when there is default risk? Explain the circumstances in which you would use each method.

  What is expected future spot rate for the chf in three years

The current spot exchange rate between the dollar and the Swiss franc (CHF) is $0.61/CHF. What is the expected future spot rate for the CHF in 3 years?

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