What is the expected return on portfolio

Assignment Help Financial Management

Reference no: EM132044541

1. You own a portfolio that has $1,500 invested in Stock A and $3,800 invested in Stock B. If the expected returns on these stocks are 9 percent and 14 percent, respectively, what is the expected return on the portfolio? (Do not round your intermediate calculations.)

2. You have $25,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 16 percent and Stock Y with an expected return of 8 percent. a) If your goal is to create a portfolio with an expected return of 10 percent, how much money will you invest in Stock X? b) If your goal is to create a portfolio with an expected return of 10 percent, how much money will you invest in Stock Y?

Reference no: EM132044541

Questions Cloud

What is the effective annual interest rate of trade credit : What is the effective annual interest rate of this trade credit?

How do these methods differ in terms of ownership : How can a firm restructure itself? How do these methods differ in terms of ownership?

Expected return on equity under each current asset level : What is the expected return on equity under each current asset level? we have assumed that the level of expected sales is independent of current asset policy.

What is cost of common equity and wacc : The last dividend was D0 = $2.75, and it is expected to grow at a 7% constant rate. What is its cost of common equity and its WACC?

What is the expected return on portfolio : If the expected returns on these stocks are 9 percent and 14 percent, respectively, what is the expected return on the portfolio?

Ready to embark on the journey of life-plan for retire : Erich and Mallory are 22, newly married, and ready to embark on the journey of life. They both plan to retire 45 years from today.

Extension of credit-single order : What is the company’s expected cash inflow from this order and when will it occur? What is net present value of this order?

What is the bank cost of preferred : Holdup Bank has an issue of preferred stock with a $5 stated dividend that just sold for $92 per share. What is the bank's cost of preferred?

When implementing their imc strategy in the qatari market : describe at least four points that Doritos should consider when implementing their IMC Strategy in the Qatari market?

User Account

All Pages