What is the expected return of the three- stock portfolio

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1. Current, the risk- free return is 3 percent, and the expected market rate of return is 9%. What is the expected return of the following three- stock portfolio?

2. Assume a non-dividend stock is trading at $41. the risk free rate is 8%. the market price of a 90 days european call with strike price $40 is $2.60. The implied volatility is ______%. A European put with the same strike price and same time to maturity is worth_____.

3. Give an example of an investment opportunity you may have in your life. What are the different risk and return characteristics of that opportunity? How do you view the tradeoff between risk and return based upon where you are in your life?

Reference no: EM131887750

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