How much money will you invest in stock x and stock y

Assignment Help Financial Econometrics
Reference no: EM13335219

You have $17,000 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 10.5 percent. If your goal is to create a portfolio with an expected return of 12.53 percent, how much money will you invest in Stock X and Stock Y?

Reference no: EM13335219

Questions Cloud

What action has our government taken in order to provide : What action has our government taken in order to provide this good or service in an equitable fashion?
Find the current in the solenoid : A long solenoid has 130 turns/cm and carries current i. An electron moves within the solenoid in a circle of radius 2.80 cm perpendicular to the solenoid axis. Find the current i in the solenoid
Determine what is the companys expected growth rate : Kahn Inc. has a target capital structure of 65% common equity and 35% debt to fund its $10 billion in operating assets. Furthermore, Kahn Inc. has a WACC of 14%, a before-tax cost of debt of 8%, and a tax rate of 40%
Evaluate the concentrations of pb(no3)2 : Given: 0.250L of 0.575M Pb(NO3)2 solution mixed with 0.300L of 0.822M NaOH at 25c. Determine if a precipitate forms. Calculated the concentrations to be 0.144 mol of Pb(NO3)2 and 0.247 mol of NaOH. What do I do from here
How much money will you invest in stock x and stock y : Your choices are Stock X with an expected return of 14 percent and Stock Y with an expected return of 10.5 percent. If your goal is to create a portfolio with an expected return of 12.53 percent,
Determine what is the annual realized return for the year : amazon.com stock prices gave a realized return of 5%, -5%, 10%, and -10% over four successive quarters. What is the annual realized return for Amazon.com for the year
Explain the reduction reaction is h2o2 : For the reaction Fe(OH)2(s)+H2O2(aq) -> Fe(OH)3(s), the reduction reaction is H2O2 -> 3OH-. The book states that the O2 from the H2O2 has a -1 charge and the OH from the Fe(OH)3 is -2.
Calculate the next expected dividend-d1 : The Bouchard Company's EPS was $6.96 in 2012, up from $3.34 in 2007. The company pays out 50% of its earnings as dividends, and its common stock sells for $31.
How much work does gravity do on the elevator : A 1400kg elevator accelerates upward at 1.30m/s2 for 11.0m , starting from rest. How much work does gravity do on the elevator

Reviews

Write a Review

Financial Econometrics Questions & Answers

  Determine how much would the company have to invest today

Assume that Window Printing, Inc. decides to wait six (3) months to make the investment due to an unexpected cash expenditure but still needs the new printing press in six (6) months.

  Determine what should be the apr for the monthly payment

for 4 years. You come back home and after doing the math you find that the monthly payment is beyond your means. At this time, you can only afford a monthly payment of $661.01.

  Determine what is the value of the depreciation tax shield

A project has sales of $462,000, costs of $274,000, depreciation of $26,000, interest expense of $3,400, and a tax rate of 35 percent. What is the value of the depreciation tax shield

  Compute the additional non-operating cash flow at end year

The venture would result in an increase in accounts receivable and inventories of $4,000,000. At the end of the 6-year life span, you estimate that the equipment could be sold at a $4,000,000 salvage value.

  What is the net present value of project at the startup cost

Molly is considering a project with cash inflows of $918, $867, $528, and $310 over the next four years, respectively. The relevant discount rate is 10 percent. What is the net present value of this project if it the start-up cost is $2,100

  Calculate the expected appreciation or depreciation in euro

The expansion would require a purchase of equipment with a price of euro 1,200,000 and additional installation of euro 300,000. The new product line is expected to increase net revenues by euro 300,000 for the next 10 years.

  Determine what would the account be worth in 35 years

If you deposit $3,500 today into an accoun earning an 11 percent annual rate of return, what would your account be worth in 35 years (assuming no further deposits). In 40 years.

  How much total interest is paid over the life of the loan

Prepare an amortization schedule for a five-year loan of $60,000. The interest rate is 9 percent per year, and the loan calls for equal annual payments. How much interest is paid in the third year

  What is the initial cash flow and the terminal cash flow

Over the past year, Home Furnsihing Express has spent $17 studying the market for the new project. The accountants estimate that store overhead will increase due to the addition of the new back office personnel.

  What is the current share price at a rate of 20 percent

Dividends are expected to grow at a rate of 20 percent for the next three years, with the growth rate falling off to a constant 8 percent thereafter. If the required return is 11 percent and the company just paid a dividend of $1.45

  Determine what is roten rooters roe of a profit margin

If Roten Rooters, Inc., has an equity multiplier of 1.51, total asset turnover of 1.30, and a profit margin of 6.1 percent, what is its ROE

  Explain which security is the better buy at par

The yield on a coporate bond is 10%, and it is currently selling at par. The marginal tax rate is 20%. A par value municipal bond with a coupon rate of 8.50% is available. Which security is the better buy

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