Economy probability of state of economy stock

Assignment Help Financial Management
Reference no: EM13976753

A portfolio consists of 20 percent Stock A, 50 percent Stock B, and 30 percent Stock C. What is the portfolio expected return given the following:

State of Economy Probability of State of Economy Stock A Returns Stock B Returns Stock C Returns

Normal 0.75 12% 5% 18%

Recession 0.25 –2 11 –24

Reference no: EM13976753

Questions Cloud

Revenue increase on the firms working capital policy : 18,109,000 total assets, 13,682000 Current Liabilities 4,427000 working capital with a 20% increase in revenue in this next year calculate and discuss the effect of the revenue increase on the firms working capital policy and provide the calculations
What is the amount of fringe benefits : Linda and Richard are married and file a joint return for 2015. During the year, Linda, who works as an accountant for a national airline, used $2,100 worth of free passes for travel on the airline; Richard used the same amount. What is the amount of..
Committed or assigned net resources : Prepare Closing entries for year-end.Prepare a Statement of Revenues, Expenditures, and Changes in Fund Balance for the Special Revenue Fund. Prepare a Balance Sheet, assuming there are no committed or assigned net resources.
Define personal image and define maintaining professionalism : Define personal image and discuss why maintaining professionalism while on the job and after hours are important. Give at least two examples of ways health care providers exhibit professionalism in practice.
Economy probability of state of economy stock : A portfolio consists of 20 percent Stock A, 50 percent Stock B, and 30 percent Stock C. What is the portfolio expected return given the following: State of Economy Probability of State of Economy Stock A Returns Stock B Returns Stock C Returns
Analyze the spectrum of health care facilities : For the next newsletter, you have been asked towrite a 900 word article about the spectrum of health care facilities. In your article: Analyze the spectrum of health care facilities that exist in the U.S. Analyze the purpose and goals of each of the..
Journal entry for accrued interest : Investment of Rs. 10,00,000 made in the year 2009 @10% . What will be Journal entry for accrued interest. Whether TDS to be deducted on accrued interest. Please show me journal entries from the year 2009. In between there is no sale of investment...
Analysis of the codes of conduct : Explain how the 6 principles relate to those identified in your analysis of the codes of conduct of the 3 chosen companies. Prepare a recommended list of at least 7 essential elements that must be included in your organization's code of conduct ba..
Future values of a cash flow stream : An investment will pay $100 at the end of each of the next 3 years, $250 at the end of Year 4, $350 at the end of Year 5, and $550 at the end of Year 6. If other investments of equal risk earn 10% annually, what is its present value? Round your answe..

Reviews

Write a Review

Financial Management Questions & Answers

  What is its beta

A stock has an expected return of 3%. What is its beta? Assume the risk-free rate is 7% and the expected rate of return on the market is 12%.

  Assets decrease and owners equity decreases

On July 1, 2012, Watson Company received a $20,000 promissory note for services from Jeffs Company. The annual interest rate is 5%. Principal and interest are paid in cash at the maturity date of June 30, 2013. Assets decrease and owners' equity decr..

  Stock price will change a lot in the near future

You are positive that the XYZ stock price will change a lot in the near future. But you are not certain about the direction of price change. Which strategy is the best to use in this scenario?

  Corporation tax rate-tax weighted average cost of capital

Given the corporation tax rate of 30% the before tax weighted average cost of capital for Le Monde is lower than its after tax WACC. For le monde corporation, the costs of various types of capital are as follows:

  Break-even financing. providence co. needs dollars

Break-even Financing. Providence Co. needs dollars.  Assume that the local one-year loan rate is 15%, while a one-year loan rate on euros is 7%.  By how much must the euro appreciate to cause the loan in euros to be more costly than a U.S.-dollar loa..

  How much will be your monthly loan payment

You plan to buy a studio apartment by taking a 30-year mortgage loan of $200,000 from a local bank, with charges on APR of 4.8%. The mortgage loan requires monthly payments. How much will be your monthly loan payment?

  The current cash flows as a dividend to its shareholders

The firm you are CEO if has a current period cash flow of 1.75 million and pays no dividend. The present value of the company’s future cash flows is $25.0 million. Suppose you and the board announce a plan to pay out 40 percent of the current cash fl..

  Managements plans for specified future time period

The master budget includes all of the following except. A formal written statement of management’s plans for a specified future time period, expressed in financial terms is a(n). All of the following are financial budgets except the. The master budge..

  Calculation including the cost of interest

You are bullish on Telecom stock. The current market price is $40 per share, and you have $10,000 to invest. If the margin limit is 50% and you borrow the maximum from your broker at 4% interest, and invest everything in Telecom, what will your retur..

  Surcharge what are the difference between heavy life

what are the difference between heavy life surcharge and long life surcharge ? details about legal aspect of carriage

  Calculate the bonds price in details

In February 2009 Treasury 6s of 2026 offered a semiannually compounded yield of 3.5965%. Recognizing that coupons are paid semiannually, calculate the bond's price in details. What is the cupon rate / what is the YTM?

  Differentiate between decreasing-charge depreciation methods

Summarize the authoritative guidance for asset impairments under IFRS. Give at least two (2) examples of events that could cause an asset to be tested for impairment, and recommend the best method to determine the fair value of an impaired asset. Dif..

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