Single and 100 stock portfolio

Assignment Help Finance Basics
Reference no: EM1355742

Your eccentric uncle died and left you $100,000. However, the will stipulated that the entire amount must be invested in common stocks. Specifically, $50,000 must be invested in a single stock (a one-stock portfolio) and the other $50,000 must be invested in a 100-stock portfolio. You are very risk averse, so you want to minimize the riskiness of each $50,000 investment.

a. Describe the kind of stock you would choose for your single-stock portfolio?

b. What types of stock would you choose the stocks for your 100-stock portfolio?

 

Reference no: EM1355742

Questions Cloud

Prevention of management fraud in australia : Are there any other regulatory controls or mechanisms (other than internal controls) that could prevent management fraud in Australia? If so, briefly discuss the ability of these mechanisms to prevent fraud?
Describe advantages or disadvantages of buying imports : The purpose of this assignment is to become familiar with the terms import and export, and then describe  advantages or disadvantages of buying imports versus buying domestic products in relation to the fashion industry.
What is the maximum emf induced in the coil : If a vehicle is traveling at velocity v and takes a distance d to stop, then how fast is a vehicle traveling if it takes a distance of 3d to stop. suppose mass and acceleration are equal.
Determining tests of controls : What do you do if you are unable to determine internal controls? Which do you think is most important?
Single and 100 stock portfolio : Suppose your eccentric uncle died and left you $100,000. However, the will stipulated that the entire amount must be invested in common stocks.
Explaining box properties available in css : Browse the Web and choose a site that could benefit from box properties available in CSS. Make a screen capture of the page and indicate how you would change border and spacing properties.
Preventative controls : Discuss the nature of preventive controls that may be designed into an AIS. Give an example and explain how it may prevent fraud or abuse of the system.
How will this change in the level of price affect demand : How will this change in the level of  price affect the demand for money and the equilibrium interest rate.
Global questions : Global Questions - how would you say such an approach affects the viability of knowledge management, especially when entering an emerging market that requires substantial infrastructure renovation or creation?

Reviews

Write a Review

Finance Basics Questions & Answers

  Calculation of fifth year cash flow

Calculation of fifth year cash flow if the cash flows shown below have a future worth of 0

  Find the correction of journal entry for bond interest

Find the Correction of journal entry for bond interest payment and this includes a brokerage commission of $1,250

  Compute the companys current stock price

The Isberg Corporation just paid a dividend of $0.75 per share, and that dividend is expected to increase at a constant rate of 5.50% per year in the future.

  Problem regarding the time value of money

Smolinski company is considering an investment which will return a lump sum of $5000,000 five years from now. What amount should simolinski company pay for this investment to earn a 15% return.

  Determine the total estimated uncollectibles

Hachey Corporation has accounts receivable of $95,100 at March 31, 2007. An analysis of the accounts shows these amounts.

  Capital structure for goodyear-campbell soup

Describe your recommendations for each of these three companies. Consider the nature of their business, the riskiness of company, and advantages and disadvantages of debt over equity financing in your answers.

  Basic types of securities issued by corporations

Illustrate out the three basic types of securities which are issued by corporations? Put in plain words the key rights for common stock ownership and how these rights benefit the shareholders.

  Maximum price for the investment

Determine Maximum price for the investment.

  Description of bonds and stocks

A three year bond with 10% coupon rate and $1000 face value yields 8% APR. Supposing annual compouding payment, compute the price of the bond.

  Question about compounding

Write down a 1 page brief which explain the term compounding, the time value of money, and the significance of retirement planning and investing.

  Determine the value of the erosion

A Corporation currently sells 300 Class A spas, 450 Class C Spas and 200 deluxe model spas each year. The company is planning adding a mid class spa and expects that if it does it can sell 375 of them.

  Time value of money pv-fv

If company B has the $100,000 cash today, and invested it at a rate of the 10% for each year for two years, how much will they have in two years?

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