If you invest 70 in stock a and 30 in stock b what would be

Assignment Help Finance Basics
Reference no: EM13479238

State of economy        Prob of Staet           Return on A       Return on B

Boom                              25%                     16%                    8%

Normal                            50%                      6%                      0%

Recession                       25%                      -8%                     4%

If you invest 70% in stock A and 30% in stock B, what would be the expected return on the portfolio?

Reference no: EM13479238

Questions Cloud

A stock has annual returns of 13 percent 21 percent -12 : a stock has annual returns of 13 percent 21 percent -12 percent 7 percent and -6 percent for the past five years. the
What are its intrinsic values at stock prices of 45 and 38 : a stock price is currently 42. its stock price will be either 45 or 38 one year from now. the risk-free rate is 5. a
A stock has a 50 chance of producing a 20 return a 25 : a stock has a 50 chance of producing a 20 return a 25 chance of producing a 10 return and a 25 chance of producing a
Assessment teaching plan current practice in mathematics : assessment teaching plan current practice in mathematics education what it looks like sounds like and feels likethe
If you invest 70 in stock a and 30 in stock b what would be : state of economynbspnbspnbspnbspnbspnbspnbsp prob of staetnbspnbspnbspnbspnbspnbspnbspnbspnbspnbsp return on
Suppose that an investor holds 4000 option that hasdelta of : suppose that an investor holds 4000 option that hasdelta of 0.6 and vega of 1.4. the investor wants to make his
A key aspect of chapter-the sociological perspective : discuss the differences between the positivist approach to the study of deviance and the interactionist approach to the
As an organizational leader investing your companys cash : as an organizational leader investing your companys cash would you choose stocks bonds or derivatives for investment
Based on your financial review determine the risk level of : imagine that you are a financial manager researching investments for your client that align with its investment goals.

Reviews

Write a Review

Finance Basics Questions & Answers

  You are analyzing the automobile industry identify at least

you are analyzing the automobile industry. identify at least five global firms operating in the u.s. market. with

  Most statistics are used in ways that are compliant with

most statistics are used in ways that are compliant with how we think they should be. however there is and always has

  What was the arithmetic average annual return in real terms

What was the arithmetic average annual return in real terms?

  Predict future earnings performance

Discuss how can the measures of interest rate risk be used to predict future earnings performance.

  What is the flotation cost of equity for a firm

What is the flotation cost of equity for a firm that generates sufficient internal cash flows to cover the equity portion of any capital expenditure?

  Find expected return and standard deviation

Assume A has an expected return of 10% and a standard deviation of 20%. Asset B has an expected return of 16 percent and a standard deviation of 40%.

  Calculate the copy department costs allocated to sales

Assuming the following copies were made during the year, 2,877,500 for sales and 2,735,000 for administration, calculate the copy department costs allocated to sales.

  Suggest the financial ratio that most financial analysts

suggest the financial ratio that most financial analysts would use to evaluate the financial condition of the company.

  What is the yield to maturity on the bond

What is the yield to maturity on the bond? (b) The Farmer National Bank plans on selling this bond at the end of 8 years for $1071. What is the holding period return on this bond?

  Historical earning growth patterns

If the P/E ratio on the S&P 500 is 10, given historical earning growth patterns, what would be a reasonable estimate of long-run future expected rates of return on the stock market? Assume a long-run inflation rate of 2.5 per annum.

  What is the firms cost of preferred stock

The 8 percent preferred stock of Home Town Brewers is selling for $47 a share. What is the firm's cost of preferred stock if the tax rate is 0.44 and the par value per share is $120?

  Normarsquos cat food of shell knob ships cat food

normarsquos cat food of shell knob ships cat food throughout the country. norma has determined that through the

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