What is the expected return on portfolio

Assignment Help Financial Management
Reference no: EM13932844

You own a portfolio that has $1,500 invested in Stock A and $3,550 invested in Stock B. If the expected returns on these stocks are 9 percent and 15 percent, respectively, what is the expected return on the portfolio? (Do not round your intermediate calculations.)

13.88%

10.78%

12.00%

13.22%

 

13.48%

Reference no: EM13932844

Questions Cloud

Standard deviation and expected return : The stock of Bruin, Inc., has an expected return of 18 percent and a standard deviation of 32 percent. The stock of Wildcat Co. has an expected return of 10 percent and a standard deviation of 36 percent. The correlation between the two stocks is .36..
Explain how plan to apply concepts and strategies covered : A description of your professional practice goals. Explain how you plan to apply the concepts and strategies covered in this course to the achievement of these goals. Finally, identify specific challenges that completing this course will enable yo..
Names of financial institutions : Please present the report information in landscape format (sideways) in either Excel or Word format. Insert the data for each financial institution side by side. The format shown here is Portrait format (top-bottom)
What is difference between times of first and second trials : Do the confidence interval limits contain 0, indicating that there is not a significant difference between the times of the first and second trials?
What is the expected return on portfolio : You own a portfolio that has $1,500 invested in Stock A and $3,550 invested in Stock B. If the expected returns on these stocks are 9 percent and 15 percent, respectively, what is the expected return on the portfolio?
Where will the peer mediation take place : What is peer mediation, Who is involved in the process and Where will the peer mediation take place?
Determine the nature of globalization : Determine the nature of globalization, cultures, and labor markets, and assess the impact on human Capital management - Give a succinct overview of the fictitious company merged with.
In contrast to the charitable remainder trust : In contrast to the charitable remainder trust, the charitable lead trust receives an income interest from the donor instead of a remainder interest. Which of the following statements concerning the advantages of the charitable lead trust created for ..
Which alternative is superior : Investment A costs $10,000 today and pays back $11,500 two years from now. Investment B costs $8000 today and pays back $4500 each year for two years. If an interest rate of 5% is used, which alternative is superior?

Reviews

Write a Review

Financial Management Questions & Answers

  Brokerage account-time to reach a financial goal

You have $44,524.78 in a brokerage account, and you plan to deposit an additional $4,000 at the end of every future year until your account totals $270,000. You expect to earn 12% annually on the account. How many years will it take to reach your goa..

  Contest sponsors have to deposit in the escrow account

The super prize in a contest is $10 million. This prize will be paid out in equal yearly payments over the next 10 years. If the prize money is guaranteed by AAA bonds yielding 3%and is placed into an escrow account when the contest is announced 1 ye..

  What is each alternatives irr

What is each alternative's IRR and If the cost of capital for both methods is 9 percent, which method should be chosen? Why?

  Present value of an uneven stream of payments

(Present value of an uneven stream of payments) You are given three investment alternatives to analyze. The cash flows from these three investments are shown in the popup window: Assuming a discount rate of 17 percent, find the present value of each ..

  What is the invoice price of the bond

How would i solve this by hand without excel or financial calc? Consider a bond with a settlement date of 01/19/1994. The maturity of the bond is March 15, 2021. The coupon rate is 5.5%. If the yield to maturity of the bond is 5.34% (bond equivalent ..

  Inventory conversion period and payables deferral period

Both the inventory conversion period and payables deferral period use the average daily COGS in their denominators, whereas the average collection period uses average daily sales in its denominator. Why do these measures use different inputs?

  What is a fixed budget

What is a fixed budget? When is it an appropriate means of evaluating a manager’s performance and why?

  Purchase perpetuity-immediate with semi-annual payments

Maggie wins the lottery and is awarded 500,000 at the beginning of each quarter for the next 20 years. The government takes 40% of her winnings and she spends 90% of what is left. At the end of 20 years the accumulated value in the account is used to..

  Consider the strategies for investing

You are thinking of investing in a stock that is selling for $60 and that you think will go up in price over the next six months. The six-month call option with exercise price = $60 sells for a premium of $5. The risk-free rate is 1% annually. Consid..

  Interest rate parity

Six-month T-bills have a nominal rate of 6%, while default-free Japanese bonds that mature in 6 months have a nominal rate of 3%. In the spot exchange market, 1 yen equals $0.008. If interest rate parity holds, what is the 6-month forward exchange ra..

  Companys capital structure consists of debt

Hook Industries' capital structure consists solely of debt and common equity. It can issue debt at rd = 8%, and its common stock currently pays a $2.75 dividend per share (D0 = $2.75). The stock's price is currently $30.50, its dividend is expected t..

  Next dividend payment-what is the required return

The next dividend payment by ECY, Inc., will be $1.88 per share. The dividends are anticipated to maintain a growth rate of 4 percent, forever. ECY stock currently sells for $37 per share. What is the required return?

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