What is expected return on the portfolio

Assignment Help Financial Management
Reference no: EM131087925

You own a portfolio that has $2,000 invested in Stock A and $3,100 invested in Stock B. Assume the expected returns on these stocks are 10 percent and 16 percent, respectively. Required: What is the expected return on the portfolio?

Reference no: EM131087925

Questions Cloud

Find the npv of entering this mba program : Jenny Jenks has researched the financial pros and cons of entering into a 1-year mba program at her state university. the tuition and books for the master's program will have an up-front cost of 100,000. given her estimates, find the npv of entering ..
What is the expected growth rate of the dividends : The common stock of Polybius Inc. just paid an annual dividend of $ 0.83 . The dividend is expected to grow at a constant rate forever. The required rate of return for this stock is 12.5 percent. If the current price of the stock is $ 24.85 what is t..
Calculate the annual cash flows : Calculate the annual cash flows (annuity payments) from a fixed-payment annuity if the present value of the 25-year annuity is $1.9 million and the annuity earns a guaranteed annual return of 11 percent. The payments are to begin at the end of seven ..
What is expected return on the portfolio : You own a portfolio that has $3,800 invested in Stock A and $4,800 invested in Stock B. If the expected returns on these stocks are 8 percent and 11 percent, respectively, what is the expected return on the portfolio?
What is expected return on the portfolio : You own a portfolio that has $2,000 invested in Stock A and $3,100 invested in Stock B. Assume the expected returns on these stocks are 10 percent and 16 percent, respectively. Required: What is the expected return on the portfolio?
About the option portfolio : Consider the following option portfolio. You write a July 2007 expiration call option on IBM with exercise price $90. You also write a July expiration IBM put option with exercise price $85. What will be the profit/loss on this position if IBM is sel..
About both technical and fundamental investing : We've just spent time talking in the course about both technical and fundamental investing. Which makes more sense to you and why? There is no correct answer ... plenty of very smart and successful people are on both sides of the argument.
What is the standard deviation of this stock for the past : A stock had returns of 6 percent, –7 percent, 2 percent, and 10 percent over the past 4 years. What is the standard deviation of this stock for the past four years?
Statements concerning financial risk : Which of the following statements concerning financial risk is false?

Reviews

Write a Review

Financial Management Questions & Answers

  About the inflation adjustments

The Rodriguez Company is considering an average-risk investment in a mineral water spring project that has a cost of $130,000. The project will produce 800 cases of mineral water per year indefinitely. What is the NPV of the project? Do not round int..

  Some additional land and build a new factory

Winston Enterprises would like to buy some additional land and build a new factory. The anticipated total cost is $136 million. The owner of the firm is quite conservative and will only do this when the company has sufficient funds to pay cash for th..

  When loaning funds to a corporation

What concerns might a loan officer have when loaning funds to a sole proprietorship that he or she might not have when loaning funds to a corporation?

  The fixed asset will be depreciated straight-line to zero

Down Under Boomerang, Inc., is considering a new three-year expansion project that requires an initial fixed asset investment of $2.82 million. The fixed asset will be depreciated straight-line to zero over its three-year tax life. What is the projec..

  Role in designing internal control systems

Describe the controller's role in designing internal control systems. Identify examples of different internal controls a controller can consider in designing an effective internal control system. How do internal control systems help prevent fraud? Ho..

  Sellers pays more of a commodity tax depends

The elasticity of demand is: Whether buyer or sellers pays more of a commodity tax depends on:

  What is the firms dividend

Firm X has a tax rate of 25%. The price of its new preferred stock is $70 and its flotation cost is $4.00. The cost of new preferred stock is 12%. What is the firm's dividend?

  Common stock as source of funds when compared to debt

What are at least two of the advantages of using common stock as a source of funds when compared to debt? When is the constant growth model appropriate to use when valuing a firms stock? Discuss at least two instances that would cause a company's sto..

  Preferred stock shares outstanding

Builtrite Auto has preferred stock shares outstanding that pay an annual dividend of $8 and are currently selling for $86 a share. What is the after-tax cost of preferred stock if the flotation cost for new shares is 5% and Builtrite is in the 34% ma..

  What is the hospitals corporate cost of capital

St. Vincent's Hospital has a target capital structure of 35% debt and 65% equity. Its costs of equity estimate is 13.5% and its cost of tax-exempt debt estimate is 7%. What is the hospital's corporate cost of capital?

  Dividends are anticipated to increase at an annual rate

The price of DDS corporation stock is expected to be $45 in 5 years. Dividends are anticipated to increase at an annual rate of 10 percent from the most recent dividend of $1.00.if your required rate of return is 15 percent, how much are you willing ..

  Savings bonds and coupon rate

The school you would like to attend costs $100,000. To help finance your education, you need to choose whether or not to sell your 1,000 shares of Apple stock, 1,000 EE Savings Bonds (with $100 denominations and 4.25% coupon rate) that are five years..

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