What is the expected return of your portfolio

Assignment Help Financial Management
Reference no: EM13721627

Stock J has a beta of 1.20 and an expected return of 13.16 percent, while Stock K has a beta of .75 and an expected return of 10.10 percent. You want a portfolio with the same risk as the market.

What is the expected return of your portfolio?

Reference no: EM13721627

Questions Cloud

What is the future value-ordinary annuity cash flow : What is the future value in 24yrs of an ordinary annuity cash flow of $345 every quarter of a year at the end of the period at an annual interest rate of 4.18 percent per year compounded quarterly? Round answer to two decimal places
What is the new divisor for the price-weighted index : Able, Baker, and Charlie are the only three stocks in an index. The stocks sell for $36, $312, and $82, respectively. If Baker undergoes a 3-for-2 stock split, what is the new divisor for the price-weighted index?
Savings account earnings : You are going to save money for your daughter’s education. You decide to place $4,252 every half year into savings account earnings 5.10 percent per year, compounded semi annually for the next 12 years. How much money will be in the account at the en..
Announces a new monetary growth policy : Suppose that during a certain week the Fed announces a new monetary growth policy, Congress surprisingly passes legislation restricting imports of foreign automobiles, and Ford comes out with a new car model that it believes will increase profits sub..
What is the expected return of your portfolio : Stock J has a beta of 1.20 and an expected return of 13.16 percent, while Stock K has a beta of .75 and an expected return of 10.10 percent. You want a portfolio with the same risk as the market. What is the expected return of your portfolio?
Bonds in both firms are risk free-they are zero-coupon bonds : The bonds in both firms are risk free and they are zero-coupon bonds that will pay the holder principal and interest one year from today. The risk-free interest rate is 10%. An individual investor can also borrow or lend from a bank at the 10% risk-f..
What is the value of the bond if the market rate : A bond's par value is $1,000. It has 5 yrs. until maturity. Its coupon rate is 7%. What is the value of the bond if the market rate is 10%, assuming annual compounding?
Payments are annual and the loan will negatively amortize : Instruction as how you solve with a financial calculator is preferred. A business borrows $325,914 for 8 years at an annual rate of interest of 6.1%. If payments are annual and the loan will negatively amortize by $30,539, what will be the annual pay..
Fixed costs and average variable cost rate : Grandview Clinic has fixed costs of $2 million and an average variable cost rate of $15 per visit. Its sole payer, an HMO, has proposed an annual capitation payment of $150 for each of its 20,000 members. Past experience indicates that the population..

Reviews

Write a Review

Financial Management Questions & Answers

  What is the probability of running out of stock

Demand for an item is 100 units a week with a standard deviation of 10 units. Lead time is one week and the reorder level used is 115 units. What is the probability of running out of stock?

  Determine the feasibility of the capital project

Determine the WACC given the above assumptions and indicate how these might be useful to determine the feasibility of the capital project.

  Compare and contrast the internal rate of return

Compare and contrast the internal rate of return approach to the net present value approach to capital rationing. Which is better? Support your answer with well-reasoned arguments and examples.

  Explain the concept of return on investment

Explain the concept of return on investment (ROI) and the two differ¬ent approaches to measuring ROI and what is the difference between a lump sum, an annuity, and an un¬equal cash flow stream?

  Elements of a contract the paper must be four to five pages

elements of a contract. the paper must be four to five pages excluding the title page and references pages and

  The impact of major eents from the recent financial

The impact of major eents from the recent financial crisis on credit default swaps

  Compare the hedging alternatives for the eur receivables

Compare the hedging alternatives for the EUR receivables with a scenario under which Yankee remains unhedged and Compare the hedging alternatives for the MYR with a scenario under which Yankee remains unhedged -Do you think Yankee should hedge or r..

  Measure and manage performance against objectives

You are exploring the need for organisations to measure and manage performance against objectives, as well as the potential effectiveness of tools such as Balanced Scorecards and Strategy Maps

  Globalisation of the international ?financial markets

Examining the important factors that driving globalisation of the international ?financial markets and providing an analytical description of one or more financial crises that have occurred ?in the world's economy

  You are planning to purchase 100 shares of preferred stock

you are planning to purchase 100 shares of preferred stock and must choose between stock a and stock b. stock a pays an

  What sort of relationship is portrayed by asset pricing mode

What sort of relationship is portrayed by asset pricing models

  What are expectations on the future market conditions

Construct the table and the diagram showing the profit-loss (as a function of the terminal futures price) of each component position and of the combined position of your portfolio - Calculate the current value, the delta, the ga..

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