What is the expected return of the second stock

Assignment Help Financial Management

Reference no: EM131027225

Cameron has a two-asset portfolio with an expected return of 13.80%. The weight of the two stocks is 30% and 70%. The first stock has an expected return of 17%, what is the expected return of the second stock?

Reference no: EM131027225

Questions Cloud

Calculate the depreciation expense : You are given the following information for Gandolfino Pizza Co.: sales = $42,000; costs = $22,100; addition to retained earnings = $4,900; dividends paid = $1,600; interest expense = $4,500; tax rate = 35 percent. Calculate the depreciation expense.

The property will provide him with rental income : Genaro needs to capture a return of 40% for his one-year investment in a property. He believes that he can sell the property at the end of the year for $150,000 and that the property will provide him with rental income of $24,000. What is the maximum..

What is the standard deviation of the stock : You believe that next year there is a 20% probability of a recession and an 80% probability that the economy will be normal. If your stock will yield -11% in a recession and 22% in a normal year, what is the standard deviation of the stock?

What is his annualized return : Craig purchased 150 shares of Box, Inc. (BOX) when it went public for $14 per share. He wants to sell his shares today, 50-days later, for $18.20 and it paid a $2.13 dividend. What is his annualized return?

What is the expected return of the second stock : Cameron has a two-asset portfolio with an expected return of 13.80%. The weight of the two stocks is 30% and 70%. The first stock has an expected return of 17%, what is the expected return of the second stock?

Why is inventory excluded from the quick ratio : Why is inventory excluded from the Quick Ratio?

What is the expected return e of the portfolio : Assume you have the following three-asset portfolio with the following characteristics: What is percentage of your portfolio is invested in Stocks A, B, and C respectively? What is the expected return E(Rp) of the portfolio?

Firm did not pay a dividend as all profits were reinvested : Rick invested in Buffalo Wild Wings (BWLD) last year when the stock was $171.36. Over the year, the firm did not pay a dividend as all profits were reinvested in the company. The current share price of BWLD is $186.74. What was Rick’s capital gain yi..

Between making public offering-arranging private placement : You need to choose between making a public offering and arranging a private placement. In each case the issue involves $9.3 million face value of 10-year debt. You have the following data for each: • A public issue: The interest rate on the debt woul..

User Account

All Pages