Goal is to create portfolio with an expected return

Assignment Help Financial Management
Reference no: EM131057079

You have $20,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 11 percent. Assume your goal is to create a portfolio with an expected return of 12.55 percent. Required: How much money will you invest in Stock X and Stock Y?

Reference no: EM131057079

Questions Cloud

Concentration of hf : If the concentrations of both H2(g) and F2(g) are found to be 7.6×10-3M at equilibrium, what is the concentration of HF(g) under these conditions?
Discuss the intersection of hospitality : MHC602 Introduction to the Hospitality Industry. In your answer you must: Discuss the intersection of hospitality, service and customer experience as a major challenge to Hotel Managers and Provide examples to support the practical application of the..
What is the expected price it will sell the bonds : Spartan Insurance Company plans to purchase bonds today that have four years remaining to maturity, a par value of $60 million, and a coupon rate of 10 percent. Spartan expects that in three years, the required rate of return on these bonds by invest..
What does the term quasi-quantification refer to : How does quantification help the qualitative researcher avoid being accused of anecdotalism? Why is it argued that qualitative research may not really be "naturalistic"?
Goal is to create portfolio with an expected return : You have $20,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 11 percent. Assume your goal is to create a portfolio with an expected return of 12.55 percent. Req..
Social and environmental responsibility team : Please read this assignment and answer the three questions below. Please make sure your grammar and punctuation is correct. Answer the questions below each of them. Richard Foos of Rhino Records built a multimillion-dollar entertainment experience..
Appreciable amounts of other radioactive nuclides : An archaeological sample contains 1.373 g of lead-206 and 3.567 g of uranium-238. Assume that all the lead now present in the rock came from the radioactive decay of the uranium and that no appreciable amounts of other radioactive nuclides are pre..
Hardware paid an annual dividend : Miller Brothers Hardware paid an annual dividend of $0.95 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you require a 13 percent rate of return, how much are you willing to pay..
Determining the complete reaction : How many moles of P are required to react completely with 1.00 mole of O2? How many moles of P2O5 are produced from the complete reaction of 1.00 mole of O2? How many moles of O2 are required to produce 0.80 moles of P2O5?

Reviews

Write a Review

Financial Management Questions & Answers

  Prepare a statement of cash flows for warnick

Prepare a statement of cash flows for Warnick Co. for the year ended May 31, Year2. Use the indirect method.

  Investments for your firms retained earnings

You are offered two investments for your firm's "retained earnings" ($4,238,000) As CFO you are looking for ways to invest the firm's hard earned money. Which option will give you a better return on and of investment (two ...ROI's)? Option 1 -pays ou..

  What is the value of the current assets

Sunset, Inc., has a book value of equity of $13,920. Long-term debt is $8,000. Net working capital, other than cash, is $2,090. Fixed assets are $19,130 and current liabilities are $1,730. How much cash does the company have? What is the value of the..

  Received a dividend-how much is this stock worth

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..

  Should the firm install the electric generator

A firm that purchases electric power from the local utility is considering the alternative of generating its own electricity. The current cost of obtaining the firm's electricity from its local utility is $42,000 per year. The cost of a steam generat..

  The effect of this sale on ni and cash would be

At the end of 2012, Liam Corporation buys a new machine for $30K, the cost of which is depreciated over 5 years. The first year’s depreciation is taken in 2013. Liam sells the machine at the end of 2015 (after three years) for $13,000. Liam’s tax rat..

  Concerned with amount of assets reported on balance sheet

You work as an accountant for a small land development company that desperately needs additional financing to continue in business. The president of your company is meeting with the manager of a local bank at the end of the month to try to obtain thi..

  Rate of return can investors expects to turn on investment

An investor is thinking about buying some shares of razortronics Inc. at $75 a share. She expects the price of the stock to rise to $115 a share over the next three years during that time, she also expects to receive annual dividends of four dollars ..

  About the firms marginal and average tax rates

Suppose a firm earns $12,000,000 in taxable income. Which of the following is correct about the firm’s marginal and average tax rates?

  Risk of the instrument with the higher interest rate

Do US Treasury bills have lower interest rates than large-denomination negotiable bank CD? Why or why not, is the difference appropriate, and do you think that it correctly reflect the risk of the instrument with the "higher" interest rate.

  What is the aftertax cash flow from the sale of this asset

Consider an asset that costs $730,000 and is depreciated straight-line to zero over its eight-year tax life. The asset is to be used in a five-year project; at the end of the project, the asset can be sold for $192,000. If the relevant tax rate is 40..

  About the sensitivity analysis

Sensitivity analysis: a. is a logical extension of partitioning to determine what portions of the forecast merit further refinement. b. is similar in form to payback analysis, except that it is done on a present value basis. c. is a substitute for th..

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