What is the portfolios expected return

Assignment Help Financial Management
Reference no: EM131027028

A portfolio is invested 18 percent in Stock G, 58 percent in Stock J, and 24 percent in Stock K. The expected returns on these stocks are 9 percent, 15 percent, and 19 percent, respectively. What is the portfolio's expected return?

Reference no: EM131027028

Questions Cloud

What is estimated intrinsic stock price : Burns & Kennedy Corporation (BK) has a value of operations equal to $2,100, short-term investments of $100, debt of $200, and 100 shares of stock. a. What is BK’s estimated intrinsic stock price? b. If BK converts its short-term investments to cash a..
Delegated management of the business to stacise wood : Brown, the owner of Julie’s Party Sandwiches, has delegated management of the business to Stacise Wood, a friend. Brown drops by to meet customers and check up on cash receipts, but Wood buys the merchandise and handles cash payments. In each instanc..
Considering adding robotic paint sprayer to production line : New-Project Analysis: The Campbell Company is considering adding a robotic paint sprayer to its production line. The sprayer's base price is $1,111,000.00, and it would cost another $26,600.00 to install it. The sprayer would not change revenues, but..
Salvage value after tax : Your firm needs a computerized machine tool lathe which costs $52,000 and requires $12,200 in maintenance for each year of its 3-year life. After three years, this machine will be replaced. The machine falls into the MACRS 3-year class life category...
What is the portfolios expected return : A portfolio is invested 18 percent in Stock G, 58 percent in Stock J, and 24 percent in Stock K. The expected returns on these stocks are 9 percent, 15 percent, and 19 percent, respectively. What is the portfolio's expected return?
Beta coefficients you spot a number of stocks : Looking at a list of beta coefficients you spot a number of stocks as possible buys for your new stock portfolio. You have $80,000 to invest. You have decided to have just three stocks in your portfolio (this will make it easier to follow than a port..
Decided to sell some new bonds : In 2007 Carnival Cruise Lines decided to sell some new bonds (something about fixing a big ship). They sold the bonds for $1,000 (face value) with a 20 year maturity and an 7% coupon. what should they expect to receive for it in the secondary market?
Venture capitalist is planning to invest in a project : A venture capitalist is planning to invest in a project that will cost 20 million at the beginning and will provide cash flows of 10 million per year for the first two years and 8 million per year for the next two years. Thereafter, the project is te..
What is the required rate of return : Janlea Co. had total net earnings of $127,000 this past year and paid out 30 percent of those earnings in dividends. There are 100,000 shares of stock outstanding at a current market price of $11.62 a share. If the dividend growth rate is 5.6 percent..

Reviews

Write a Review

Financial Management Questions & Answers

  About the investment outlay

Talbot Industries is considering launching a new product. The new manufacturing equipment will cost $18 million, and production and sales will require an initial $4 million investment in net operating working capital. What is the initial investment o..

  Decided not to replace the depreciated equipment

Two identical firms, A and B, have the same revenue of $10 million and equal variable and fixed costs for the current year. At the start of the year, they both owned $20,000,000 in equipment which follows a depreciation schedule of 5% per year.   Ove..

  The tax treatment regarding the sale of existing assets

The tax treatment regarding the sale of existing assets that are sold for their book value results in: a. recaptured depreciation taxed as ordinary income b. no tax benefit or liability c. an ordinary tax benefit d. a capital gain tax liability and r..

  Thinking about retirement

Although you are young, you are already thinking about retirement. You have decided you want to retire in 25 years from now. You want to live on a retirement of $90,000 per year. You figure you will live about 45 years on that retirement (you work-ou..

  What was its interest expense

Molteni Motors Inc. recently reported $8 million of net income. Its EBIT was $15 million, and its tax rate was 36%. What was its interest expense?

  Accounts receivale collecetion period and discount kitkat

kitkat tools are considering offering a cash discount to speed up the collection of accounts receivable. currently the

  Expected to pay the dividends

South Side Corporation is expected to pay the following dividends over the next four years: $15, $11, $10, and $6.50. Afterward, the company pledges to maintain a constant 5 percent growth rate in dividends forever. If the required return on the stoc..

  Calculate the payback-profitability index-net present value

Using a 4.5% discount rate, calculate the Net Present Value, Payback, Profitability Index, and IRR for each of the investment projects below

  Explain bank''s asset portfolio and liability portfolio

What is the weighted average duration of bank's asset portfolio and liability portfolio? What is the leverage-adjusted duration gap?

  Preferred stock valuation

Several years ago, Rolen Riders issued preferred stock with a stated annual dividend of 12% of its $100 par value. Preferred stock of this type currently yields 7%. Assume dividends are paid annually. What is the value of Rolen's preferred stock?

  What is their yield to maturity

Interest is paid annually, the bonds have a $1,000 par value, and the coupon interest rate is 10%. The bonds sell at a price of $850. What is their yield to maturity?

  Banned from using health-related information

In Sweden, health insurance firms are banned from using health-related information, such as age, sex, or occupation determine health insurance rates .This ban is aimed at increasing the insurance premiums for healthy young Swedish people while decrea..

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