A Ltd.'s share gives a return of 20% and B Ltd.'s share gives 32% return. Mr. Gotha invested 25% in A Ltd.'s share and 75% of B Ltd.'s shares. What would be the expected return of the portfolio?

Solution:

Portfolio Return = .25 (20) + .75 (32) = 29%

 

Posted Date: 9/24/2013 1:46:03 AM | Location : United States

Ask an Expert

Related Discussions:- What would be the expected return of the portfolio, Assignment Help, Ask Question on What would be the expected return of the portfolio, Get Answer, Expert's Help, What would be the expected return of the portfolio Discussions

Write discussion on What would be the expected return of the portfolio
Your posts are moderated

Write your message here..

Related Questions

Valuation of share, Valuation of Share A number of parties are interes... Valuation of Share A number of parties are interested however in the value of shares and securities and that will include: Company shareholders, vendors and directors of

Interpolation method, Interpolation method Consequently, r denote... Interpolation method Consequently, r denotes required rate of return Consequently, r = 14 percent + (15 percent - 14 percent) x 253 .646 /253 .646 + 5.375

Functions of central bank, Functions of Central Bank a) Ensure Economi... Functions of Central Bank a) Ensure Economic stability b) Lender to the government c) Printing of currency notes d) Banker to the government e) Lender of last reso

DESICIONES DE INVERSION A LARGO PLAZO, LOMBARD COMPANY LOMBARD COMPANY

Illustrate the advantages of underwriting, Illustrate the Advantages of Und... Illustrate the Advantages of Underwriting Underwriting presumes great significance as it offers the below benefits to the issuing company: (i) Issuing company is relied f

Raf.rad@hotmail.com, 1-Suppose you deposit $ 5 000 in the bank. How much c... 1-Suppose you deposit $ 5 000 in the bank. How much can you raise after 10 years when discount rate is 5% for the first four years and then rises to 7% annually? 2 -A used car co

Assiogment, Ask question #MinimQuestion You are the financial accountant ... Ask question #MinimQuestion You are the financial accountant of Donald Bhd, a manufacturer and wholesaler of soft drinks. Donald Bhd is in direct competition with Fizz Bhd and Po

Dow Theory, Dow theory elliot wave theory Dow theory elliot wave theory

Risk premium of a stock, (a) RBC has 100 loans outstanding, each for $1 mil... (a) RBC has 100 loans outstanding, each for $1 million, which it expects to be repaid today.  Each loan has a 5% probability of default, in which case the bank is not repaid anythi

FUNCTIONS OF BUDGET, FUNCTIONS OF BUDGET THAT MUST BE PRESENT IN THE MUNICI... FUNCTIONS OF BUDGET THAT MUST BE PRESENT IN THE MUNICIPAL FINANCIAL MANAGEMENT AND INDICATE HOW THESE FUNCTIONS CAN INFLUENCE MUNICIPAL FINANCIAL MANAGEMENT