What will be the expected return for your portfolio

Assignment Help Financial Management

Reference no: EM131602007

Assume that you formed a portfolio by investing $15,000 in Bank America and $10,000 in the S&P 500. Below is information on three “states of nature” and the return that you would see over the next year from each security in each state of nature. What will be the expected return for your portfolio? Probability of "state" Bank of America S&P 500 1/3 .16 .06 1/3 -.08 .12 1/3 .28 .18 a. .1047 b. .1262 c. .1200 d. .1320 e. .1181.

Reference no: EM131602007

Questions Cloud

What impact does crime analysis have on geographic profiling : What impact does crime analysis have on geographic profiling. Should crime analysis personnel be drawn from the ranks of sworn or civilian personnel

Discuss and analyse the growth of hubbards foods : BSRE301 Business Strategy Assessment - Group Presentation and Report. Discuss and analyse the growth of Hubbard's Foods since it was established

Explain internet exploitation and primary federal law : Explain Internet Exploitation and Primary Federal Law, types of online traps that have the most adverse impact on children

What is the net present value of the loan : What is the net present value of the loan to TTC if the firm’s tax rate is 34 percent and it accepts the county’s offer?

What will be the expected return for your portfolio : What will be the expected return for your portfolio?

List two advantages and disadvantages of job specialization : List two advantages and disadvantages of job specialization. What aspects of Taylorism have you encountered in any jobs you have had?

Find the surface area s as a function of r : A closed cylindrical can of fixed volume V has radius r. Find the surface area, S, as a function of r.

How did james dozier showed emotional intelligence : Section Can emotional intelligence save your life Read "Case study" (P. 9). How did James Dozier showed Emotional Intelligence?

Discuss digital-crime and non-digital crime : Determine one additional theory that a researcher could use to explain the cause of digital-crime and non-digital crime

User Account

All Pages