The expected return of your portfolio

Assignment Help Financial Management

Reference no: EM131021479

Stock J has a beta of 1.17 and an expected return of 14.4 percent, while Stock K has a beta of 0.68 and an expected return of 7.6 percent. You want a portfolio with the same risk as the market. What is the expected return of your portfolio? 10.67 percent 11.18 percent 11.62 percent 12.04 percent 13.13 percent

Reference no: EM131021479

Questions Cloud

What is the value of your retirement plan : Assume that you contribute $230 per month to a retirement plan for 20 years. Then you are able to increase the contribution to $460 per month for another 30 years. Given a 7 percent interest rate, what is the value of your retirement plan after the 5..

Debating whether to lease or purchase a new imaging machine : A small town hospital is debating whether to lease or purchase a new imaging machine. What financial and other factors do you think they need to consider when making a decision?

Reasons for the differences in net income and cash flow : The guiding principles underlying the accrual basis of accounting drive a wedge between a firm's reported income and its cash flow. What are some of the reasons for the differences in net income and cash flow?

Which investment has the higher present value : Investment X oers to pay you $3,700 every year for the next nine years, whereas investment Y oers to pay you $5,500 per year for the next ve years. If the interest rate is 6%, which investment has the higher present value?

The expected return of your portfolio : Stock J has a beta of 1.17 and an expected return of 14.4 percent, while Stock K has a beta of 0.68 and an expected return of 7.6 percent. You want a portfolio with the same risk as the market. What is the expected return of your portfolio? 10.67 per..

What is the maximun amount of cash : Globo- Chem Co. Reported net sales of $500 million last year and generated a net income of $110 million. Last year's accounts receivable increased by $8million. What is the maximun amount of cash that Globo-Chem Co received from sales last year?

Mutual fund with an expected annual return : Jack asked jill to marry him, and she has accepted under one condition: jack must buy her a new $310,00 rolls-royce phantom. jack currently has $45,700 that he may invest. He has found a mutual fund with an expected annual return of 6.6% in which he ..

What is the present value of this prize : Suppose the Texas lottery advertises that it pays its winner $10 million. However, this prize money is paid at the rate of $500,000 each year (with the first payment being immediate) for a total of 20 payments. What is the present value of this prize..

Electronic funds transfer according to the terms of payment : A woman of a large Japanese company has purchased 16,000 widgets from you. The USD value of the widgets is $16,000. Terms of payment are NET 90. The exchange rate at the time of billing/invoicing USD1=80 yen. Her bank pays you via electronic funds tr..

User Account

All Pages