What is the expected return on the portfolio

Assignment Help Financial Management
Reference no: EM132046020

You own a portfolio that has $3042 invested in Stock A and $4170 invested in Stock B. If the expected returns on these stocks are 8 percent and 10 percent, respectively, what is the expected return on the portfolio?

(Enter your answer as a percentage, omit the "%" sign in your response, and round your answer to 2 decimal places. For example, 0.12345 or 12.345% should be entered as 12.35.)

Reference no: EM132046020

Questions Cloud

What is aftertax cost of debt : The bond currently sells for 96 percent of its face value. The company's tax rate is 31 percent. What is the aftertax cost of debt?
What is pretax cost of debt : Himiny's Cricket Farm Issued a 27-year, 11 percent semiannual bond 2 years ago. What is the pretax cost of debt?
Make arbitrage profit from the market mispricing : If after the dividend announcement, the 3-month forward price still stays the same, how would you make arbitrage profit from the market mispricing?
What is the bank cost of preferred stock : Holdup Bank has an issue of preferred stock with a $5.42 stated dividend that just sold for $96 per share. What is the bank's cost of preferred stock?
What is the expected return on the portfolio : If the expected returns on these stocks are 8 percent and 10 percent, respectively, what is the expected return on the portfolio?
The mortgage monthly payments are : They made payments for the last 10 years and the new mortgage will be for 30 years at 3.90%. The mortgage monthly payments are?
Identified risks be used in the real project management : How the risk management: Currently Identified Risks be used in the real project management?
Higher-cost capital to replace lower-cost capital : "Increasing the debt ratio by issuing new debt to buy back stocks is effectively using higher-cost capital to replace lower-cost capital."
Firm becomes more risky and thus should have less debt : The combined total for the pre-merger firms because after the merger, the firm becomes more risky and thus should have less debt.

Reviews

Write a Review

Financial Management Questions & Answers

  Company recognize for the current period

Based on past experience, Heller Company expects 4% of sales to be returned. How much gross profit will Heller Company recognize for the current period?

  Expectation of the rate of return on the stock

Investors expect the market rate of return this year to be 11.50%. How would you revise your expectation of the rate of return on the stock?

  Return based on an assets systematic risk

The Up and Coming Corporation's common stock has a beta of 1.5. If the risk-free rate is 4 percent and the expected return on the market is 10 percent, what is the company's cost of equity capital?

  Standard deviation of the two asset portfolio

What is the standard deviation of the following two asset portfolio?:

  Brokers-contracts-proof of title and closing

Helen and Scott Nearing sign a contract to buy the house from the Woodards. Is Kitty entitled to the commission?

  What is its break-even point in units

XYZ, Inc. pays $105,000 in rent for its factory, and its factory manager receives annual compensation of $100,000. It sells the units produced at $10 a unit. If the raw material costs are $1.95 and the direct labor costs are $2.20 per unit. what is i..

  Assume bond is currently selling at par value

Assume a bond is currently selling at par value. What will happen in the future if the yield on the bond is lower than the coupon rate?

  The state lotterys million-dollar payout provides

The state lottery's million-dollar payout provides for $1 million to be paid out over the course of 19 years in equal cash amounts. The first payment is made immediately, and the remaining 19 payments occur at the end of each of the next 19 years. If..

  Negatively impacts their long term capital budgeting.

A frequent criticism of the management of publicly-owned American companies is that they are too short-term oriented, too focused on fast returns, and that this negatively impacts their long term capital budgeting.

  What principle does this exercise demonstrate

Comment on the results of your calculations above. What principle does this exercise demonstrate?

  Cumulative mark to market be if silver prices

What will your cumulative mark to market be if silver prices are $19.10 per ounce at expiration?

  Re-invest the coupons at an annual rate

let's say you buy a 12% coupon (paid semi-annually), AA-rated, $1000 par value coupon bond for $1100 when it has 16 years left until it's maturity. You re-invest the coupons at an annual rate of 6% and sell the bond off after 6 years, when its yield ..

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