What is expected rate of return on a portfolio

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1. Adept NV is analyzing a proposed project. The company expects to sell 2,500 units, give or take 10%. The expected variable cost per unit is €8 and the expected fixed costs are €12,500. Cost estimates are considered accurate within a plus or minus 5% range. The depreciation expense is €4,000. The sale price is estimated at €16 a unit, give or take 2%. The company bases its sensitivity analysis on the expected case scenario. What is the sales revenue under the optimistic case scenario?

A. €40,000 B. €43,120 C. €44,000 D. €44,880 E. €48,400

2. What is the expected rate of return on a portfolio Which consists of $9,000 invested in an S&P 500 Index fund, $32,500 in a technology fund, and $8,500 in Treasury Bills. The expected rate of return is 11% on the S&P Index fund, 14% on the technology fund and 2% on the Treasury Bills.

A) $154.00 B) $142.80 C) $65.00 D) $15.12

Reference no: EM131334580

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