Inflation continues at annual rate

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Reference no: EM131911715

1. How much will a $20,000 automobile cost 10 years from now if inflation continues at an annual rate of 4% for the next decade?

2. You own a stock portfolio invested 25 percent in Stock Q, 25 percent in Stock R, 10 percent in Stock S, and 40 percent in Stock T. The betas for these four stocks are 1.72, 0.75, 0.92, and 1.34, respectively. What is the portfolio beta?

3. You own a portfolio that has $2,350 invested in Stock A and $4,000 invested in Stock B. If the expected returns on these stocks are 9 percent and 15 percent, respectively, what is the expected return on the portfolio?

Reference no: EM131911715

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