Create a portfolio with an expected return

Assignment Help Financial Management

Reference no: EM13726085

You have $258,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.3 percent, and Stock L, with an expected return of 10.9 percent.

Required:

If your goal is to create a portfolio with an expected return of 12.4 percent, how much money will you invest in Stock H and in Stock L? (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).)

Investment in Stock H $

Investment in Stock L $

Reference no: EM13726085

Questions Cloud

Full-service and limited-service research suppliers : Outline the development and current status of the marketing research function. What are the differences between full-service and limited-service research suppliers?

Regress the stocks past returns against the risk-free rate : One way to calculate a stock's beta is to- calculate the stock's coefficient of variation. calculate both the stock's mean return and the std.dev. of the returns. regress the stock's past returns against the risk-free rate.

What annual rate of return is earned : What annual rate of return is earned on a $3,200 investment when it grows to $6,900 in twenty years?

Use for measuring the risk of a random variable : The best measure to use for measuring the risk of a random variable would be:

Create a portfolio with an expected return : You have $258,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.3 percent, and Stock L, with an expected return of 10.9 percent.

Money by investing in common stock : Suppose the returns on large-company stocks are normally distributed. Also suppose large-company stocks had an average return of 12% and a standard deviation of 26.2%.

What is the real rate of return of large-cap stocks : Large- Cap stocks had the nominal rates of return of 13.20 percent. The rate of inflation during the last year was 4.07 percent. What is the real rate of return of large-cap stocks?

What is principal outstanding after the first loan payment : John Doeber borrowed $150,000 to buy a house. His loan cost was 6% and he promised to repay the loan in 15 equal annual payments. What is the principal outstanding after the first loan payment?

Future value of this cash flow pattern at end of year five : You have been offered the opportunity to invest in a project that will pay $2,726 per year at the end of years one through three and $5,219 per year at the end of years four and five. These cash flows will be placed in a saving account that pays 9.49..

User Account

All Pages