What is the expected return on the portfolio

Assignment Help Financial Management
Reference no: EM131911069

1) You own a portfolio that has $2,350 invested in Stock A and $4,000 invested in Stock B. If the expected returns on these stocks are 9 percent and 15 percent, respectively, what is the expected return on the portfolio?

A) 11.22%

B) 12.78%

C) 12.00%

D) 13.04%

E) None of these are correct.

2) You own a stock portfolio invested 25 percent in Stock Q, 25 percent in Stock R, 10 percent in Stock S, and 40 percent in Stock T. The betas for these four stocks are 1.72, 0.75, 0.92, and 1.34, respectively. What is the portfolio beta?

A) 1.25

B) None of these are correct.

C) 1.31

D) 1.27

E) 1.18

Reference no: EM131911069

Questions Cloud

Calculate the total cost of each job : AAM3691 – MANAGEMENT ACCOUNTING Calculate the total cost of each job and Calculate the amount of over/under applied overhead for December 2017
Energy stored in the solenoid : An MRI scanner uses a large solenoid with inductance 0.53 H, carrying 2.4 kA of current.
What is estimate of the stock current price : The company's stock has a beta of 1, the risk-free rate is 6.5%, and the market risk premium is 4%. What is your estimate of the stock's current price?
Explain the assumptions that must be met by the investigator : Discuss when it is appropriate to use the test. Next, discuss the assumptions that must be met by the investigator to run the test.
What is the expected return on the portfolio : You own a portfolio that has $2,350 invested in Stock A and $4,000 invested in Stock B. , what is the expected return on the portfolio?
Expectations hypothesis of term structure of interest rates : According to the pure expectations hypothesis of the term structure of interest rates, this is an indication that __________.
Increase in temperature : How much heat is exchanged when 100g of solution with a specific heat of 3.93 Jg-1K-1 has an increase in temperature of 5.2oC?
Reaction of calcium hydroxide with acetic acid : Write a chemical equation that describes the heat of neutralization for the reaction of calcium hydroxide with acetic acid.
What is meant by the term float-what is the role of floats : Why does Warren Buffett invest in the insurance industry? What is meant by the term "float"? What is the role of "floats"?

Reviews

Write a Review

Financial Management Questions & Answers

  What is the cash conversion cycle

What is the cash conversion cycle? What would happen to the cash conversion cycle if they could stretch their payments to suppliers from 29 days to 49 days?

  Assume that car-rental company buys cars

Assume that a car-rental company buys cars for $ 20,000 each and rents them out to other businesses.

  What would be the power of the type of test used in problem

What test can be used to test the hypothesis that an increase in amount of sleep will change the number of medical errors per day?

  What is its total assets turnover and equity multiplier

Henderson's Hardware has an ROA of 12%, a 3% profit margin, and an ROE of 20%. What is its total assets turnover? What is its equity multiplier?

  Failure of nursing facility is usually measured

The financial success or failure of a nursing facility is usually measured by its: If a nursing facility borrows $10,000, which accounts are affected?

  Bond valuation-shorter-term bond when interest rates change

An investor has two bonds in his portfolio that both have a face value of $1,000 and pay a 8% annual coupon. Bond L matures in 19 years, while Bond S matures in 1 year. What will the value of the Bond S be if the going interest rate is 5%?  Why does ..

  The free cash flow to equity

Suppose a firm exists for only 3 years. The free cash flow to equity (FCFE) is $1,000,000 at the end of each year.

  Explain expected average percentage return on savings

A couple has just given birth to a baby and named him Jimmy. They want to start a college savings account for Jimmy and start saving for his college education. The following facts will help you work this problem

  Require ten percent rate of return

How much are you willing to pay for one share of J.M. Smucker Co. stock if the company just paid a $0.70 annual dividend, the dividends increase by 3.0 percent annually, and you require a 10 percent rate of return?

  How large of sales increase can the company achieve

How large of a sales increase can the company achieve without having to raise funds externally?

  Capital structure and degree of leverage analyses

Which of the following are practical difficulties associated with capital structure and degree of leverage analyses?

  Decrease in financial leverage

Which of the following will lead to a decrease in financial leverage?

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