Define the portfolio return

Assignment Help Financial Management
Reference no: EM131539429

Suppose you buy 50 shares of rbc at $90 per share and 70 shares of td at $78 per share , if rbc's stock goes up to $94 per share and td's stock falls to $72 per share, what is your portfolio return?

A) -2.2% B)0% C) 6.4% D) 4.4% E) -7.7%

Reference no: EM131539429

Questions Cloud

What is the wacc for ampex : Ampex common stock has beta of 1.4 if the risk free rate is 8%, the expected market return is 16% and Ampex has $20 million of 8% debt.
Used as the risk-free rate of return : The return on which one of the following is used as the risk-free rate of return?
What is the exact interest on both offers : The shipping charges are $150 and the interest is 8.75% for both options. What is the exact interest on both offers?
Replacement analysis-replace it with new plane : If AirExpress’s MARR is 10% per year, what would you advise the company to do--keep the old plane or replace it with the new plane?
Define the portfolio return : if rbc's stock goes up to $94 per share and td's stock falls to $72 per share, what is your portfolio return?
What is probability of up movement in risk-neutral world : What is the percentage up movement? What is the percentage down movement? What is the probability of an up movement in a risk-neutral world?
More refined approach to projecting long-term assets : What may be a more refined approach to projecting long-term assets?
How much money will he have at retirement : How much money will he have at retirement if he puts 60% of his money in equities, 30% in bond funds and the rest in money market funds?
Ratio analysis to get to du point identity analysis : Ratio Analysis to get to Du Point Identity Analysis

Reviews

Write a Review

Financial Management Questions & Answers

  Was the bond a good deal for investors

Given the "fat" coupon, is this bond necessarily a great deal for the investors? At maturity, in August 1990, the exchange rate was actually JPY144/USD. Was the bond a good deal for investors?

  Exercise the option or use the spot transaction

Assume you import 1 million Euro of computer from Europe from France and you have to make the payment in Euro and pay in September. To hedge against rate uncertainty, you can buy a September option. If you buy the option, on the maturity date, the sp..

  Inclusive have the following common conditions the riskless

inclusive have the following common conditions the riskless interest rate r gt 0 the underlier is trading at a spot

  Calculate the price and the duration of the bond

A 4-year bond, that has a face value of $100 and pays a coupon of 5% annually, is selling at a yield-to-maturity of 6%. Calculate the price and the duration of the bond.

  Standardized global marketing vs adapted global marketing

Discusses the global marketplace. Many multi-national firms first started marketing domestically only before choosing to expand their reach internationally.When deciding on a global marketing program, there are 2 broad choices: standardized global ma..

  What price will the stock reach equilibrium

A share of stock with a beta of .81 now sells for $69. Investors expect the stock to pay a year-end dividend of $4. The T-bill rate is 4%, and the market risk premium is 7%. Suppose investors believe the stock will sell for $71 at year-end. Is the st..

  What is the coeffient of variation of an investment

You received a dividend of $6.68 this morning and are attempting to decide if you should hold onto this stock. You expect this stock to grow at 14% for 3 years. After that, you think they will grow at 13%. Given the level of risk, you need a return o..

  What is the yield to maturity for treasury bonds

what is the yield to maturity for treasury bonds that mature at the end of (A) 2018 (a two-year bond) and (B) 2019 (a three-year bond)?

  What is npv that makes you indifferent between two options

Suppose that you are approached with an offer to purchase an investment that will provide cash flows of $1,300 per year for 15 years. The cost of purchasing this investment is $9,200. You have an alternative investment opportunity, of equal risk, tha..

  What is the degree of operating leverage

A proposed project has fixed costs of $74,000 per year. The operating cash flow at 8,000 units is $93,400. Ignoring the effect of taxes, what is the degree of operating leverage? If units sold rise from 8,000 to 8,500, what will be the new operating ..

  Transactions is source of cash

Which of the following terms is defined as the length of time between the purchase of inventory and the date of receipt of cash from the sale of that inventory is called the: Which one of the following transactions is a source of cash? Which TWO of t..

  Invested funds problem

Your uncle has $1,025,000 and wants to retire. He expects to live for another 25 years, and he also expects to earn 7.5% on his invested funds. How much could he withdraw at the beginning of each of the next 25 years and end up with zero in the accou..

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