What is the expected return for this portfolio

Assignment Help Financial Management
Reference no: EM131351304

An investor has the following portfolio:

Stock Beta   Investment

Tootsie Roll Industries 1.3 $10,000

The Hershey Company   1.4   $30,000

Nestle 0.6   $10,000

If the T-Bill rate is 5% and the market risk premium is 5.5%, according to the CAPM, what is the expected return for this portfolio?

The expected return for this portfolio is ___?%.

?(Round to two decimal places.)

Reference no: EM131351304

Questions Cloud

The reasons for making such investments : Assume that you have a client who wants to make an investment of $ 400,000. Explain what investment recommendations you would make (stocks , bonds, t-bills, mutual funds, etc.) and the reasons for making such investments. You can choose the investor ..
What is total dollar return on this investment : Six months ago, you purchased 1,200 shares of ABC stock for $21.20 a share and have received total dividend payments of $.60 a share. Today, you sold all of your shares for $22.20 a share. What is your total dollar return on this investment?
Characteristics is associated with financing type project : Which one of the following characteristics is most associated with financing type projects?
What is my new balance after interest is added : Suppose that during a 31-day billing cycle, my credit card balance was $429.49 for the first 15 days of the month, it was $558.87 for the next 11 days of the month, and it was $695.85 for the last 5 days of the month. If my credit card's APR is 15.02..
What is the expected return for this portfolio : If the T-Bill rate is 5% and the market risk premium is 5.5 %, according to the CAPM, what is the expected return for this portfolio? The expected return for this portfolio is ___%.
Find the rectangular equation of the curve : Find the rectangular equation of the curve whose parametric equations are given. Then graph the equation using arrows to indicate orientation.
Define the elements of a legal contract using examples : Define the elements of a legal contract using examples from the scenario where applicable. Decide whether or not there was a contract for the purchase of the automobile.
What is a multiple baseline design : What is a multiple baseline design? Why is it used? Distinguish between multiple baseline designs across subjects, across behaviors, and across situations.
What is the perimeter of the triangle : Triangle QRS has sides of lengths 14, 19, and t, where t is the length of the longest side. If t is the cube of an integer, what is the perimeter of the triangle?

Reviews

Write a Review

Financial Management Questions & Answers

  Foreign company acquisition

Acquisition by a foreign company and the effects of that decision and the results of foreign exchange in Euro and the exchange rate differences.

  Financial management for profit and non profit organizations

In this essay, we are going to discuss the issues of financial management in a non-profit organisation.

  Method for estimating a venture''s value

Evaluate venture's present value, cash and surplus cash and basic venture capital.

  Replacement analysis

This document show the Replacement Analysis of modling machine. Is replacement give profit to company or not?

  Business finance task - capital budgeting

Your company is considering using the payback period for capital-budgeting. Discuss the advantages and disadvantages of this technique.

  Analysis of the investment

In this project, you will focus on one of these: the additional cost resulting from the purchase of an apple press (a piece of equipment required to manufacture apple juice).

  Conduct a what-if analysis

Review the readings and media for this unit, including the Anthony's Orchard case study media. Familiarise yourself with the Anthony's Orchard company and its current situation.

  Determine operational expenditures

Organisations' behaviour is guided by financial data. In the short term, such data will help determine operational expenditures; in the long term, historical data may help generate forecasts aimed at determining strategic plans. In both instances.

  Personal financial management

How much will you have left over each half year if you adopt the latter course of action?

  Sources of finance for expansion into new foreign markets

A quoted company is considering several long-term sources of finance for expansion into new foreign markets.

  Long term financial planning

This assignment is designed for analyze Long term financial planning begins with the sales forecast and the key input in the long term fincial planning.

  Explain the role of fincial manager

This assignment explain the role of fincial manager, function of manger. And what are the motives of financial manager.

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