How much will you need to invest in stock

Assignment Help Financial Management
Reference no: EM132028623

You have $20,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 16 percent and Stock Y with an expected return of 6 percent. If your goal is to create a portfolio with an expected return of 12.3 percent, how much ($) will you need to invest in Stock X and Stock Y?

$amount in Stock X: _____

$amount in Stock Y: _____

Reference no: EM132028623

Questions Cloud

Calculate the NPV of the replacement analysis : The firm's WACC is 8.20%, and its marginal tax rate is 40%. Calculate the NPV of the replacement analysis?
Future value would be greater if interest rate was higher : A two-year investment of $200 is made today at an annual interest rate of 6%. The future value would be greater if the interest rate was higher.
Estimate of the price per share that investment bank : What would be your estimate of the price per share that the investment bank should set for the stock's IPO next month?
What is the market-cap of this firm : What’s the growth rate for this firm? How many shares are outstanding? What is the price per share. What is the market-cap of this firm?
How much will you need to invest in stock : You have $20,000 to invest in a stock portfolio. how much ($) will you need to invest in Stock X and Stock Y?
What should one share of this stock be worth in the markets : What should one share of this stock be worth in the markets next year if investors presently expect an 8 percent return on the firm?
How much do you owe in taxes to nearest dollar : With taxes having risen to 50%, how much do you owe in taxes to the nearest dollar?
What required rate of return is implied : You estimate its dividend is expected to grow at an average of 3.5% per year. What required rate of return is implied?
Find the conversion premium-parity price and share : use the conversion equivalent (or conversion parity price per share) to find the conversion premium. Parity price/share. Conversion premium

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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