Solution-What was the return on his portfolio

What was the return on his portfolio

Reference no: EM131144351

Tim's portfolio contains two stocks, Lightco and Shineco. Last year his portfolio returned 14 percent. Lightco's return was 5 percent and Shineco returned 20 percent. What are the weights of each in Tim's portfolio? The following year Tim adds a third stock, Brightco, and relocates his funds among the three stocks. Lightco and Shineco have the same weight in the portfolio, and Brightco's weight is one-half of Lightco. During the year Lightco returns 10 percent, shineco returns 12 percent, and brightco loses 5 percent. What was the return on his portfolio?

Reference no: EM131144351

Questions Cloud

Identify the tax issues facing the way lands : The Waylands’ investment adviser told them that their share of the tax loss in the first year alone would be in excess of their initial cash investment. This would be followed by several more years of losses. They feel confident that their interest i..

Suggest which type of auditing test would be most effective : Given a company’s pressure to meet earnings forecast, discuss how earnings manipulation is most likely to occur. Suggest which type of auditing test would be most effective at detecting earnings manipulated by a company’s management team and the effe..

Find coupon rate on these bonds must be percent : Hollin Corporation has bonds on the market with 17 years to maturity, a YTM of 11.6 percent, and a current price of $617.65. The bonds make semiannual payments. The coupon rate on these bonds must be percent.

Will probably is followed by increased price competition : The lowering of barriers to trade and investment between countries within a trade group will probably is followed by increased price competition. Do you agree? Why? Why not?

What was the return on his portfolio : During the year Lightco returns 10 percent, shineco returns 12 percent, and brightco loses 5 percent. What was the return on his portfolio?

What is your optimal price and quantity given the production : However, the construction of the new plant takes a full year, and during the year while your factory is under construction, you have to shut down the production facility, and cannot produce Hair Grow. Should you undertake the investment (for simplici..

Describe and analyze the wartime experiences : Describe and analyze the wartime experiences of the Revolution and the effects on women, slaves an natives.

Define the term constraints and give an example : Define the term constraints and give an example. For a manufacture what product should be made first when resource constraints exist?

Suggest the reasons and causes for the downward tailspin : The global economy in 2011 appears to be headed into a double-dip recession. Based on your knowledge of aggregate demand and aggregate supply, suggest the reasons and causes for the downward tailspin of the economy. Provide support for your response.

User Account

All Pages

What was the return on his portfolio

Reference no: EM131144351

Reference no: EM131144351

Questions Cloud

Reviews

Write a Review

Finance Basics Questions & Answers

Financial reporting and analysis

A report on financial accounting

Describe the types of financial ratios

Differences between sole proprietorship and corporation

Prepare a cash budget statement

What are the implied interest rates

State pricing theory and no-arbitrage pricing theory

Small business administration

Effect of financial leverage

Evaluate the basis for the payment to the lender

Importance of opps, ipps, mpfs and dmepos

Time value of money

Assured A++ Grade

Academics

Major Subjects

Majors

Get In Touch

TERMS & POLICIES

HELP & SUPPORT