What is the minimum expected annual return for stock

Assignment Help Finance Basics
Reference no: EM132035767

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 0.11 and 0.11 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: EM132035767

Questions Cloud

What is the aftertax salvage value : What is the aftertax salvage value from this sale if the tax rate is 34 percent?
How do people respond to the new technology : Write a summary. Your summary needs to cover: How do people respond to the new technology? What are the positive and negative effects of technology for the user
Assumption about market equilibrium : Using the CAPM and an assumption about market equilibrium, forecast Firm L's price in one year.
Maintain to buy the car at the end : If peter can keep his grade during whole academic career. What grade he will need to maintain to buy the car at the end.
What is the minimum expected annual return for stock : 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
Characteristics of successfully funded companies : What are the characteristics of successfully funded companies? By Venture Capitalist.
Explain as fully as possible why the change is needed : Write an essay that shows how there needs to be a change in one particular thing. It need not to be any of the examples given above.
Ensure the company success : What controls or supports are used & given by venture capital firms to help ensure the company's success?
Funding amount a business : What criteria does a Venture Capitalist firm use to decide on the funding amount a business would receive?

Reviews

Write a Review

Finance Basics Questions & Answers

  Prevent covered interest arbitrage

What must be the forward exchange rate to prevent covered interest arbitrage?

  Difference between project risk and corporate risk

What is the difference between project risk and corporate risk? How would you measure the impact of risk on a firm's value?

  What price do you pay for the bond

Suppose that you purchase this bond on January 15, 2018. Bonds with similar risk characteristics are yielding 5%.

  What is the monthly return on the investment vehicle

What is the monthly return on this investment vehicle? (Round your answer as directed, but do not use rounded numbers in intermediate calculations.

  What is the dividend yield

If P1 is $24.61, and Po is $22.97, what is the capital gains yield? ______% The total return, r, is 15%. What is the dividend yield?

  What is the quick ratio

SDJ, Inc has a net working capital of $1,370, current liabilities of $3,720, and inventory of $1,950. What is the current ratio? What is the Quick ratio?

  What is meant by corporate separateness

What is meant by corporate separateness and why is it important?

  Same amount as your sister in 6 years

How much more must you deposit today in order to have the same amount as your sister in 6 years?

  What makes for a good investment

What makes for a good investment? Use the approximate yield formula or a financial calculator to rank the following investments according to their expected returns.

  What extent do floating-rate bonds and puttable bonds

What extent do floating-rate bonds and puttable bonds protect the investor against each of these risks

  Computing current, working capital, and eps ratios

The following information are taken from the financial statements of Prone, Inc. as of the end of the year 2007. The information are in alphabetical order.

  Redemption will occur at a specific time or upon a specific

Determine and compare the financial reporting (debt versus equity classification) of redeemable preferred stock with the following characteristics under U.S. GAAP and IFRS. Redemption will occur at a specific time or upon a specific event .

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