What is the expected rate of return on a portfolio

Assignment Help Financial Management
Reference no: EM131334563

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.

Reference no: EM131334563

Questions Cloud

Should landon stay or go : After that, the scouts expect Landon to obtain a five-year contract for $6 million per year to take him into retirement.- Assume that Landon can earn a 10 percent return over this time. Should Landon stay or go?
Single most important economic principle : Thinking back on what you have learned in this course, identify the single most important economic principle learned and explain why it was more significant than any other principle or concept.
Design a differential op-amp circuit with resistor tolerance : Design a Differential Op-Amp circuit with 5% resistor tolerances for R1, R2, R3 and R4 in Multisim. Run the simulation to measure the output voltage of the amplifier.
What factors influence the demand for product : Pick a product or service you use in your everyday life and describe the market for this product. For this paper we will use the UBER driving service. Please make sure to address the following questions: 1. What factors influence the demand for ..
What is the expected rate of return on a portfolio : 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..
Federal reserve conducts monetary policy : Monetarists disapprove of how the Federal Reserve conducts monetary policy. What is it about the Fed's policy process that bothers them? Discuss their criticisms.
What is the amount of the fixed cost per unit : 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. The sale price is estimated at €16 a unit, give or take 2%. The c..
How much does melissa have to invest in a fund today : How much does Melissa have to invest in a fund today if the fund earns the following interest rate?- 6 percent per year with annual compounding.
Draw the state diagram for the convolutional code : Draw the state diagram for the convolutional code generated by the encoder shown in Figure P8.19, and thus determine whether the code is catastrophic. Also, give an example of a rate 1/2, K = 4, convolutional encoder that exhibits catastrophic err..

Reviews

Write a Review

Financial Management Questions & Answers

  Containing initial investment and all the costs and revenues

Seven years has passed since Samuel Adams Healthcare Center (SAHC) bought the machine to detect a certain heart condition. Their original machine is being retired, and they want to buy a new machine. Fill in the following table, containing the initia..

  After-tax profit margin is forecasted

Broussard Skateboard's sales are expected to increase by 20% from $8.6 million in 2013 to $10.32 million in 2014. Its assets totalled $5 million at the end of 2013. Baxter is already at full capacity, so its assets must grow at the same rate as proje..

  Expected return portfolio

You have decided to invest $70,000 in Stock Fund, and $30,000 in Bond. The returns for each fund are forecasted below: Fill in the portfolio’s forecasted return for a strong economy and a weak economy. Then calculate the expected return for the portf..

  Financial market investors were risk neutral

Currently, Yields to Maturity on 1-year and 2-year US Treasury securties are .602% and .852%. You can assume that for simplification purposes there are no coupon payments on these bonds and the ytm is entirely due to the difference in face value and ..

  What is the current value of the stock if the risk-free rate

A one-year call option contract on Cheesy Poofs Co. stock sells for $1,310. In one year, the stock will be worth $63 or $84 per share. The exercise price on the call option is $76. What is the current value of the stock if the risk-free rate is 4 per..

  Abandonment options are rarely seen in the real world

In general, the more uncertainty there is about market conditions, the more attractive it may be to wait before making an investment. In general, the greater the strategic advantages of being the first competitor to enter a given market, the more att..

  What annual rate of interest must you earn

What annual rate of interest must you earn on your investment to cover the cost of your child's college education?

  What are the key provisions of the ecoa

What are the key provisions of the ECOA? Why was such legislation necessary?

  Shares of stock outstanding at a market price

Bob's Auto Group has 25,000 shares of stock outstanding at a market price of $4.50 a share. What will the market price per share be if the company does a 1-for-5 reverse stock split? A. $18.00 B. $20.00 C. $22.50 D. $27.00 E. $29.50

  What is the banks cost of preferred stock

Fifteenth Bank has an issue preferred stock with $8 stated dividend that just sold for $89 per share. What is the bank’s cost of preferred stock? (Show your work and round your answer to two decimal places).

  What is the equivalent annual annuity for this project

Black Sheep broadcasting is considering a five year-project that has a weighted average cost of capital of 12% and a net present value (NPV) of $56,489. Black sheep broadcasting can replicate this project indefinitely. What is the equivalent annual a..

  What is the sensitivity of the NPV to the price and quantity

McGilla Golf is evaluating a new golf club. The clubs will sell for $770 per set and have a variable cost of $370 per set. The company has spent $147,000 for a marketing study that determined the company will sell 59,000 sets per year for seven 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