What is the expected return from a portfolio comprised

Assignment Help Financial Accounting
Reference no: EM132993477

Problem 1: Which of the following is a true statement?

a) Risk and the likelihood of realizing future cash flows from an investment are unrelated.
b) Riskless investments do not usually earn a positive return.
c) There is a direct relationship between risk and expected return.
d) Although economists understand the relationship between risk and return, they have been unable to develop a way to quantify it.

Problem 2: If Microsoft stockholders expect either a 25.6% return or a 1.8% ?return, each with a 50% ?probability, and Apple Computer shareholders expect a 10.3% return with? certainty, what is the expected return from a portfolio comprised of equal amounts of stock from both? firms?

a) 10%
b) 9%
c) 12%
d) 11%

Reference no: EM132993477

Questions Cloud

Compare four methods of assessing health care organizations : Compare four methods of assessing health care organizations' operational needs and explain how they may differ based upon a particular health care setting.
What is one problem you feel better able to solve : What is one problem you feel better able to solve? What skills and information will you use from this course to solve that problem
What is the expected return from portfolio : You hold a portfolio composed of 50?%. If A has an expected return of 14?% and B has an expected return of 18?%, what is expected return from your? portfolio?
How can you apply what you learned about communication : How can you apply what you learned about communication and relationship building to your personal, professional, and academic life
What is the expected return from a portfolio comprised : Apple Computer shareholders expect a 10.3% return with? certainty, what is the expected return from a portfolio comprised of equal amounts of stock?
Find What is the portfolio weight for Anheuser-Busch InBev : You buy 1,360 shares of Molson Coors, which are currently priced at $34.26 a share. What is the portfolio weight for the Anheuser-Busch InBev holding?
What do understand by cryptocurrency : What do you understand by cryptocurrency? Explain in a paragraph. Do you think bitcoin is hyped, over valued, undervalued or correctly valued?
Should invest in mutual fund and why : The fund has a beta of 1.75. The risk-free rate is 4.5% and the expected return on the market is 10%. Should you invest in her mutual fund?
What is the portfolio weight on the market portfolio : The expected return on the risk-free asset is 4% and the expected return on the market is 10%. What is the portfolio weight on the market portfolio?

Reviews

Write a Review

Financial Accounting Questions & Answers

  What is the nominal monthly interest rate

The remainder is borrowed from the Monash Bank to be repaid by 15 monthly payments of $405.50 each. What is the nominal monthly interest rate?

  What are start-up costs and operating expenses

What are start-up costs and operating expenses and why must potential business owners take them into account before staring up a business?

  What is the present value net benefit of the project

A project yields an annual benefit of $140 year,The interest rate is 5 percent and there is no inflation. What is the present value net benefit of this project?

  Find the outstanding balance immediately

A loan is to be repaid with $1,000, $2,000.Find the outstanding balance immediately after the second payment is paid by the prospective method

  Cinotti bread depot bakes and sells each bagel

Cinotti Bread Depot bakes and sells each bagel Cinotti received a special order for 15,000 bagels to be sold for $1.10 per bagel.

  Identify the one true statement about the money

Identify the one true statement about the money and banking system. Historically banks could not create more bank receipts than they had coins to cover them.

  What is universal wacc

What is Universal's WACC? Universal Foods has a debt-to-value ratio of 50%, its debt is currently selling on a yield of 8% and its cost of equity is 12%.

  How is the transaction price to be measured by the entity

How is the transaction price to be measured by the entity when receiving non-cash consideration from a customer consistent with AASB 15

  Process inventory

Basham had no beginning work in process inventory. During 20X6, Basham started and finished 500 units.

  Prepare statement of comprehensive income

Roxanne Carter Corporation reported the following for 2014: net sales $1,208,100; cost of goods sold $739,500; selling and administrative expenses $322,700; and an unrealized holding gain on available-for-sale securities $22,400. Prepare a statement ..

  Find what is the equipment after-tax salvage value for use

Find What is the equipment after-tax salvage value for use in capital budgeting analysis? Note that if the equipment's final market value is less than its book

  How does the concept of limited liability impact business

1. According to the concept of limited liability, the liability of shareholders of a company is restricted to the face value of shares. They have no personal obligation for the liabilities of the company.Consider the concept of limited liability and ..

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