What is the expected return on the portfolio

Assignment Help Financial Management
Reference no: EM131069060

You own a portfolio that has $1,400 invested in Stock A and $1,000 invested in Stock B. If the expected returns on these stocks are 10% and 14%, respectively, what is the expected return on the portfolio?

Reference no: EM131069060

Questions Cloud

Principles of management select the single best answer : 1Rajis assigned to hold apress conference that discusses the company's plans to Build anew plant Raj is performing the role.
Write a script and a function to implement secant algorithm : In this assignment you will write a script and a function to implement the secant algorithm. The function will implement the secant algorithm and return the root of the function. The script will define the required data and send the data to the funct..
What is the share price of the companys stock : Gibson Co. has a current period cash flow of $1.2 million and pays no dividends. The present value of the company’s future cash flows is $20 million. The company is entirely financed with equity and has 800,000 shares outstanding. Assume the dividend..
What you intend to persuade the reader to think and do : State the purpose of your report, i.e. what you intend to persuade the reader to think and/or do. Then describe what you will address first as you attempt to overcome possible resistance and persuade them of the merits of your viewpoint and/or req..
What is the expected return on the portfolio : You own a portfolio that has $1,400 invested in Stock A and $1,000 invested in Stock B. If the expected returns on these stocks are 10% and 14%, respectively, what is the expected return on the portfolio?
Strategy and calculate the hedged value : (a) Explain the strategy and calculate the hedged value of GE's cash flow using a forward market hedge. (b) Explain the strategy and calculate the hedged value of GE's cash flow using a money market hedge.
The impact of bipolar on female adult population : The impact of bipolar on female adult population, How does the experience of bipolar in female population affect interpersonal relationships?
What was dividend yield-percentage total return : Suppose a stock had an initial price of $60 per share, paid a dividend of $4 per share during the year, and had an ending share price of $70. Compute the percentage total return. What was the dividend yield? The capital gains yield?
Adjustments for various elements of comparison : A comparable property sold six moths ago for $150,000. The adjustments for the various elements of comparison have been calculated as follows:

Reviews

Write a Review

Financial Management Questions & Answers

  Money market account paying

Mary Spinks currently has $5,750 in a money market account paying 4.37 percent compounded semi-annually. She plans to use this amount and her savings over the next 5 years to make a down payment on a townhouse. She estimates that he will need $15,000..

  Assume that the investment bankers required return

In its negotiations with its investment bankers, ELR Inc. has reached an agreement whereby the investment bankers receive a smaller fee now (6.5% of gross proceeds versus their normal 10%) but also receive a 1-year option to purchase an additional 12..

  Exorbitant salaries earned by corporate executives

Do you think that the exorbitant salaries earned by corporate executives are justified? Please explain your position. What are your thoughts on how organizations can close the income gap that is experienced by women, minorities, and minimum wage work..

  What is the incremental savings of buying the valves

Howell Corporation produces an executive jet for which it currently manufactures a fuel valve; the cost of the valve is indicated below: Cost per Unit Variable costs Direct material $900 Direct labor 600 Variable overhead 300 Fixed costs. the space o..

  Large non-profit health relief organization

Choice five - your role is as the chief administrative officer of a large non-profit health relief organization. After reviewing the course concepts you will identify several issues that directly connect to the written assignment. You are in the role..

  The total rate of return on this investment

Joelle purchased 100 shares of PAC stock for $20 per share and sold this same stock one year later for $25 per share. She paid commissions of $60 when she purchased the stock and $70 when she sold the stock. Dividends of $2 per share were paid during..

  Stock portfolio with a total value

Mrs. Landis has a 2-stock portfolio with a total value of $520,000. $175,000 is invested in Stock A with a beta of 1.25 and the remainder is invested in Stock B with a beta of 1.25. What is her portfolio's beta?

  Bonds are the only debt outstanding for the firm

You are analyzing the after-tax cost of debt for a firm. You know that the firm’s 12-year maturity, 9.10 percent semi-annual coupon bonds are selling at a price of $767.17. These bonds are the only debt outstanding for the firm. What is the current Y..

  What is your estimate of the stocks current price

A company currently pays a dividend of $3 per share (D0 = $3). It is estimated that the company's dividend will grow at a rate of 19% per year for the next 2 years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.25, the..

  What is the estimated value of this stock today

A company is expected to pay their first annual dividend 2 years from now. That payment will be $1.50 a share. Starting in Year 3, the company will increase the dividend by 5% per year. The required return from common shareholders is 15%. What is the..

  Depreciated on a straight-line basis

McGilla Golf has decided to sell a new line of golf clubs. The length of this project is seven years. The company has spent $1704685 on research and development for the new clubs. The plant and equipment required will cost $28597768 and will be depre..

  Assume that a portfolio of stocks had an average return

Assume that a portfolio of stocks had an average return of 12% and a standard deviation of 19% over a certain holding period. In which range do the returns fall 99% of the time, assuming the returns are distributed normally?

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