Portfolio with securities-expected return of portfolio

Assignment Help Financial Management
Reference no: EM131532400

You hold a portfolio with the following securities: Security Percent of portfolio Return Stock A 48% 2.6% Stock B 15% 11.6% Stock C Please calculate it 6.2% Calculate the expected return of portfolio. Round the answers to two decimal places in percentage form.

Reference no: EM131532400

Questions Cloud

Two potential uses of vacant site have been identified : Two potential uses of a vacant site have been identified. What is the highest and best use of this site?
Find the cost of unlevered equity for hp : HP and Dell are companies in the exact same business. Find the cost of unlevered equity for HP. What is HP’s new WACC?
Should the existing building be demolished : Should the existing building be demolished if there are no demolition costs? Should the existing building be demolished if demolitioon costs are $10,000.
Incremental free cash flows should be included to account : When evaluating the proposed? expansion, what incremental free cash flows should be included to account for the need to accelerate the purchase of tank? cars?
Portfolio with securities-expected return of portfolio : You hold a portfolio with the securities. Calculate the expected return of portfolio.
Future exchange rates to be to motivate the use of option : What is the break-even exchange rate? What would Micca Metals expect future exchange rates to be to motivate the use of this option?
Financed only by debt and common stock : A company (financed only by debt and common stock) changes its capital structure from 20% Debt to Assets to 80% Debt to Assets.
How the breakeven point of firms with high fixed costs : Explain how the breakeven point of firms with high fixed costs relative to low variable cost differs from firms with relatively low fixed costs
Calculate the incremental irr for the cash flows : Consider the following cash flows on two mutually exclusive projects for the Bahamas Recreation Corporation (BRC). Calculate incremental IRR for the cash flow.

Reviews

Write a Review

Financial Management Questions & Answers

  What is the nonsystematic standard deviation

In the APT model, what is the nonsystematic standard deviation of an equally-weighted portfolio that has an average value of σ(ei) equal to 25% and 50 securities?

  Net payoff that you will receive from each warrant

Saunders Corporation currently has 1,000,000 common stocks outstanding. It considers raising $10 million through issuing 20-year 7.5% coupon bonds – annually paid - with 10 warrants. Each bond has a face value of $1,000. Each warrant gives the holder..

  Two values you get for the operations of the firm

You have been asked to value a company using the FCF method. The free cash flow last year for the company was $20 million. Free cash flow for next year expected to be -$20 million. The following year you expect is to be $15 million. You have been ask..

  Compute the after-tax two-year realized compound yield

A newly issued bond pays its coupons once a year. Its coupon rate is 5.6%, its maturity is 20 years, and its yield to maturity is 8.6%. a. Find the holding-period return for a one-year investment period if the bond is selling at a yield to maturity o..

  What will the dividend be one year from now

Dividend smoothing: The Deck Company just paid a dividend of $1.55 per share of stock. Its target payout ratio is 45 percent. In one year, the company expects to have earnings per share of $7.10. If the adjustment rate is .4, as defined in the Lintne..

  About the current share price

Lohn Corporation is expected to pay the following dividends over the next four years: $17, $13, $12, and $7.50. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stock is 1..

  Summit builders has a market debt-equity ratio

Summit Builders has a market debt-equity ratio of 0.85, a corporate tax rate of 35 %, and pays 6% interest on its debt. By what amount does the interest tax shield from its debt lower Summit's WACC? (Round answer two decimal places)

  Calculate the net patient service revenue

Given the following information, calculate the net patient service revenue: The company is a not-for-profit managed care organization. Therefore, they don't have an account for "net patient service revenue," and they don't have any non-operating inco..

  What are the consequences of credit bubbles

What are the consequences of credit bubbles? Explain the steps to be taken to control credit bubbles. Explain the reasons for the housing sector boom in the US prior to 2006.

  How many additional shares must benjamin sell to angel

Benjamin Garcia's start-up business is succeeding, but he needs $190,000 in additional funding to fund continued growth. Benjamin and an angel investor agree the business is worth $760,000 and the angel has agreed to invest the $190,000 that is neede..

  What is the present value of this stream of cash flows

Wally, president of Wally's Burgers, is considering franchising. He has a potential franchise agreement that would allow him to receive 13 end-of-year payments starting one year from now. What is the present value of this stream of cash flows?

  How much money did it cost to buy these shares

You would like to buy shares of Sirius Satellite Radio (SIRI). The current ask and bid quotes are $4.10 and $4.07, respectively. You place a market buy order for 570 shares that executes at these quoted prices. How much money did it cost to buy these..

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