Expected return from portfolio comprised of equal amounts

Assignment Help Financial Management

Reference no: EM131332279

If Microsoft stockholders expect either a? 25% return or a? 2% return, each with a? 50% probability, and Apple Computer shareholders expect a? 10% return with? certainty, what is the expected return from a portfolio comprised of equal amounts of stock from both? firms?

Reference no: EM131332279

Questions Cloud

Find the optimal behavior strategies of the two players : In the following two-player zero-sum game, find the optimal behavior strategies of the two players. (Why must such strategies exist?)

What was average annual risk premium earned : Assume that over 85 years, the total annual returns on large company common stocks averaged 18.4%, long term government bonds averaged 6.7%, & U.S. T-Bills averaged 3.8%. What was the average annual risk premium earned by long term government bonds &..

Explain the relationship between risk and return : Explain the relationship between risk and return. Identify an example of risk and return. Explain which is more risky bonds or common stocks. Explain how understanding risk and return will help you in future business ventures.

Compute the value of the given game in mixed strategies : Compute the value of the given game, in mixed strategies, and in behavior strategies, if these values exist.

Expected return from portfolio comprised of equal amounts : If Microsoft stockholders expect either a? 25% return or a? 2% return, each with a? 50% probability, and Apple Computer shareholders expect a? 10% return with? certainty, what is the expected return from a portfolio comprised of equal amounts of stoc..

Required return for the market : If the risk-free rate is 10.3 percent and the market risk premium is 4.6 percent, what is the required return for the market?

What are the political implications of international trade : What are the political implications of International trade for the international system?

Compute the minimum number of toy cars needed : Compute the minimum number of toy cars needed to be sold annually for this 3-year project to generate zero NPV.

What is the beta of portfolio : You own $21,500 of City Steel stock that has a beta of 3.32. You also own $38,500 of Rent-N-Co (beta = 1.77) and $20,700 of Lincoln Corporation (beta = -.83). What is the beta of your portfolio?

User Account

All Pages