What is the minimum expected annual return for stock

Assignment Help Financial Management

Reference no: EM131589636

In order to fund her retirement, Michele requires a portfolio with an expected return of 0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock 3. If Stocks 1 and 2 have expected returns of 0.10 and 0.08 per year, respectively, then what is the minimum expected annual return for Stock 3 that will enable Michele to achieve her investment requirement?

Reference no: EM131589636

Questions Cloud

Estimate the after-tax return on capital : Estimate the pretax return on capital, by year and on average, for the project. Estimate the after-tax return on capital, by year and on average, for project.

Appear in individual health insurance policies : Explain the following renewal provisions that may appear in individual health insurance policies:

What is the equal annual consumption : what is the equal annual consumption he could enjoy until that date?

May appear in individual health insurance policies : Explain the following renewal provisions that may appear in individual health insurance policies:

What is the minimum expected annual return for stock : what is the minimum expected annual return for Stock 3 that will enable Michele to achieve her investment requirement?

Establishing health savings account : Describe a person (individual or family) who would likely benefit from establishing a health savings account (HAS)

What is amount of the firm net fixed assets : What is the amount of the firm’s net fixed assets?

What mortgage type can he expect to be approved : What mortgage type can he expect to be approved for, and will the rate to be as good as that of a prime mortgage?

Purpose of deductibles and coinsurance in health insurance : Discuss the purpose of deductibles and coinsurance in health insurance and the need for insureds to share in those types of costs.

User Account

All Pages