What is the expected return on trevor portfolio

Assignment Help Financial Management
Reference no: EM132073912

1. What are the differences between the following alternatives?

1- Obtain private debt financing

2- Seek out a private investor(s) who would be willing to share ownership

3- Seek out offers for a private buy-out

4- Issue public debt (corporate bonds)

5- Issue public common stock

2. Trevor has a portfolio valued at $4,500. Of this amount, $3,150 is invested in Home Center stock and the remainder is invested in Garden Flower stock. The expected rate on Home Center stock is 15.4 percent and the expected return on Garden Flower stock is 9.8 percent. What is the expected return on Trevor’s portfolio?

a) 8.97 percent b) 10.78 percent c) 12.60 percent d) 13.72 percent e) 14.99 percent

Reference no: EM132073912

Questions Cloud

Make fixed-rate payments and variable-rate payments : Should it be an interest-rate swap buyer (and make fixed-rate payments) or seller (and make variable-rate payments)? Explain.
Retirement in investment earning : You have $50,000 in savings for retirement in an investment earning stated annual rate of 9% compounded semi-annually.
What stated annual interest rate does this account offer : What stated annual interest rate (assuming quarterly compounding) does this account offer?
What is maturity-risk premium for two-year treasury note : At present, the real risk-free rate of interest is 1.9%, what is the maturity-risk premium for this 2-year Treasury note?
What is the expected return on trevor portfolio : What is the expected return on Trevor’s portfolio?
How many years will it take to reach your goal : You aspire to have $1,000,000 in savings when you retire. Assuming you add no more to your savings, how many years will it take to reach your goal?
What stated annual interest rate : What stated annual interest rate (assuming monthly compounding) does this account offer?
What are kingman expected monthly cash outflows : What are Kingman's expected monthly cash outflows during January through April?
What is the value of your investment : What is the value of your investment at the end of 10 years?

Reviews

Write a Review

Financial Management Questions & Answers

  When collection of the account receivable is expected

The loan is to be repaid at the end of ninety days, when collection of the account receivable is expected.

  Relationship between bond value and interest rate changes

Discuss the relationship between bond value and interest rate changes. What effect do interest rate changes have on bond values on the secondary markets? As the maturity date on a bond approaches what happens to the effect, on bond value, of interest..

  What was its absolute minimum value

What was the absolute maximum value of the U.S. dollar during this period? What was its absolute minimum value?

  Calculate the current and quick ratios to find the state

How is inventory policy (research and use activity ratios)? How is the leverage? Collectively, what do you see as the big picture?

  Rate of return and make no additional contributions

You have just made your first $3,000 contribution to your retirement account. Assuming you earn an 9 percent rate of return and make no additional contributions. What will your account be worth when you retire in 45 years?

  What is value of three-month at money european call option

What is the value of a three-month at-the-money European call option on XYZ's stock if the stock is priced at $100 when the option is purchased?

  Individual can hedge against loss from decline interest rate

If a lender agrees to lend a firm $ 1,000,000 after six months at the going rate, that individual can hedge against the loss from a decline interest rates by

  Calculate the net present value of the two projects

Calculate the net present value of the two projects. What is the investment decision based on the net present value? Explain.

  Annual compounding and semiannual compounding

Eight years ago you purchased a $1,000 30-year zero coupon bond for $575. What was the annual YTM on that bond at that time using (a) annual compounding; and (b) semiannual compounding?

  What is the future value

What is the future value of $2,700 in 20 years assuming an interest rate of 8 percent compounded semiannually?

  The terms of swap that the firm might accept

What risk does the firm face and how could it hedge this risk with an interest rate swap? Give an example of the terms of a swap that the firm might accept?

  Promissory note in the amount

Taking for Value Betty Ellis and her then husband W.G. Ellis executed and delivered to the Standard Finance Company (Standard) a promissory note in the amount of $2,800. After receiving the note, Standard issued a check to the couple for $2,800. The ..

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