What is the expected return of your portfolio

Assignment Help Financial Management

Reference no: EM13937965

Stock J has a beta of 1.25 and an expected return of 13.41 percent, while Stock K has a beta of 0.8 and an expected return of 10.35 percent. You want a portfolio with the same risk as the market.

Requirement 1:

What is the portfolio weight of each stock? (Do not round intermediate calculations. Round your answers to 4 decimal places (e.g., 32.1616).)

Stock J:

Stock K:

Requirement 2:

What is the expected return of your portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Expected return of the portfolio:

Reference no: EM13937965

Questions Cloud

What earnings per share does cook report before expansion : What earnings per share does Cook report before the expansion? What earnings per share will Cook report if the proposed expansion is undertaken?

What is the maximum dollar purchase you can make : You have $30,000 and decide to invest on margin. If the initial margin requirement is 60 percent, what is the maximum dollar purchase you can make?

Less rules that accepts the same language : Consider the following Turing MachineM = (Q, !,#,^, !, q0, F), where^ = {7, 8, 9} and! = {1, 2, 7, 8, 9,#}:Here, a transition of the form 9/1,R means that when the head is reading 9, M can legally write 1 and move right. Blank is denoted by #.

Make the presidents replacement economically advantageous : In 2006, Violet Rose Computer Corporation purchased a new quality inspection system for $550,000. The estimated salvage value was $50,000 after 10 years. Currently the expected remaining life is 7 years with an AOC of $27,000 per year and an estimate..

What is the expected return of your portfolio : Stock J has a beta of 1.25 and an expected return of 13.41 percent, while Stock K has a beta of 0.8 and an expected return of 10.35 percent. You want a portfolio with the same risk as the market. What is the portfolio weight of each stock? What is th..

Create a portfolio with an expected return : You have $252,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return of 14.2 percent, and Stock L, with an expected return of 10.3 percent. If your goal is to create a portfolio with an expected return of 12.1 percent, ..

Show the effects of the previous transactions : Show the effects of the previous transactions on the accounting equation using the following format. Assume the note payable is to be repaid within the year.

What is your account equity at this stock price : You short sold 800 shares of stock at a price of $45 and an initial margin of 55 percent. If the maintenance margin is 30 percent, at what share price will you receive a margin call? What is your account equity at this stock price?

How much of the liabilities are classified as long-term debt : How much of these liabilities are classified as long-term debt? How much of their debt is maturing in each of the next five years? How much is maturing in more than five years?

User Account

All Pages