Calculate the expected return of portfolio

Assignment Help Financial Management
Reference no: EM13928035

Mary holds a portfolio with the following securities:

Security                  Percent of portfolio                 Return

Stock A                    30%                                       -6.4%

Stock B                     20%                                        13.0%

Stock C                   Please calculate it                     5.0%

Calculate the expected return of portfolio. Round the answer to two decimal places in percentage form.

Reference no: EM13928035

Questions Cloud

Interested in building a movie recommendation system : Suppose an online media streaming company is interested in build- ing a movie recommendation system. The website maintains data on the movies in their database (genre, length, cast, director, budget, etc.) and additionally collects data from their su..
What is their break-even level of operating income : Home Depot, Inc. (HD) had 1.70 billion shares of common stock outstanding in 2008, wheras Lowes Companies, Inc. (LOW) had 1.46 billion shares outstanding. Assuming Home Depot's 2008 interest expense is $696 million, Lowes' interest expense is $239 mi..
What is standard deviation rounded to nearest whole number : You are given the following probability distribution of returns for stock J: A probability of .2 that the return will be 12%; a probability of .35 that the return will be 18%; a probability of .3 that the return will be -10%; and a probability of .15..
What is annualized holding period return : Jack purchased 100 shares of Green Forest Inc. stock at a price of $157.65 three months ago. He sold all stocks today for $158.57. During this period the stock paid dividends of $5.67 per share. What is Jack's annualized holding period return (annual..
Calculate the expected return of portfolio : Mary holds a portfolio with the following securities: Calculate the expected return of portfolio. Round the answer to two decimal places in percentage form.
Random returns for two well–diversified portfolios : Random returns for two well–diversified portfolios at time t are given by: Construct factor portfolio for factor 1 by combining portfolios A, B, and T-bills. What are the weights of these portfolios in factor portfolio 1? What is the expected return ..
In divisional income statements prepared : In divisional income statements prepared for Wilborne Construction Company, the Payroll Department costs are charged back to user divisions on the basis of the number of payroll checks, and the Purchasing Department costs are charged back on the basi..
What are the possible reasons for the trend : What does the calculation of each ratio represent? How does year one compare with year two, and what trend can be seen when you compare the two years? Is the trend from year one to year two positive or negative? What are the possible reasons for the ..
What does the calculation of each ratio represent : What does the calculation of each ratio represent? How does year one compare with year two, and what trend can be seen when you compare the two years? Is the trend from year one to year two positive or negative? What are the possible reasons for the ..

Reviews

Write a Review

Financial Management Questions & Answers

  Calculate the fair value for the share

The current market price for shares in company ABC is 550 pence. Spot rates from the yield curve for year i are: r1 = 0.04 (4%); r2 = 0.05 (5%) rj = 0.06 (6%) (for j > 2) and the market risk premium (rp) on ABC shares is 4% (0.04) over the risk-free ..

  Importance of a balanced capital structure and the problems

The importance of a balanced capital structure and the problems which are associated with high levels of gearing.

  Calculate the balance sheet-based accruals and cash flow

calculate the balance sheet-based accruals and cash flow-based accruals ratios. Analyze the ratios and other information,of Wal -Mart and write an assessment of financial reporting quality.

  Conduct a complete bond refunding analysis

Schumann Shoe Manufacturer is considering whether or not to refund a $70 million, 10% coupon, 30-year bond issue that was sold 8 years ago. It is amortizing $4.5 million of flotation costs on the 10% bonds over the issues 30-year life. Conduct a comp..

  Total of credit entries to the cash account amounted

In the first month of operations, the total of the debit entries to the Cash account amounted to $1,000 and the total of the credit entries to the Cash account amounted to $600. The Cash account has a

  Yield to maturity and yield to call

Kaufman Enterprises has bonds outstanding with a $1,000 face value and 10 years left until maturity. They have an 10% annual coupon payment, and their current price is $1,175. The bonds may be called in 5 years at 109% of face value (Call price = $1,..

  How does net working capital affect

How does net working capital affect the NPV of a 5-year project if working capital is expected to increase by $30,000 and the firm has a 16% cost of capital?

  Two companies are considering the acquisition of defenseless

Two companies are considering the acquisition of Defenseless, Inc. Buyer A is a strategic buyer and Buyer B is a financial buyer. The following information pertains to Defenseless, Inc.

  What is the annual dollar amount of interest-bond investment

Assume that three years ago you purchased a corporate bond that pays 6.5 percent. The purchase price was $1,000. What is the annual dollar amount of interest that you receive from your bond investment?

  Bank offers a loan on the terms

Suppose that a bank offers a loan on the following terms:

  Assume poisson properties apply

Leaks occur along a pipeline at the mean rate of 0.5 leaks per mile. Assume Poisson properties apply. What is the probability that a 3 mile stretch will have no leaks? (to four decimal places)

  What was the real cost of borrowing hkd for one year

If you borrowed HKD100,000 on January 1, converted this to dollars and used these funds for one year, and then paid off the HKD loan on December 31, what was the real cost of borrowing HKD for one year?

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