What is your expected rate of return on this portfolio

Assignment Help Financial Management

Reference no: EM131302206

As an investor, you saw an opportunity to invest in a new security with expected rate of return of 20%. Wanting to invest more than you had, you sold another security short with an expected rate of return of 6%. The total amount you sold short was $2,000, and your total amount invested in the new security was $16,000. What is your expected rate of return on this portfolio? (Please keep your answer to 4 decimal places, e.g. 0.1234)

Reference no: EM131302206

Questions Cloud

Abandon command and control styles of management : Complex theorists advise organizational leaders to abandon command and control styles of management and instead set global performance targets and establish a few simple rules. This approach can unleash creativity an innovation,

Prepare the strategic objectives for your new division : Develop the strategic objectives for your new division of the existing business in a balanced scorecard format in the context of key trends, assumptions, and risks.

What is the radius of curvature of the path : A 2.00-T magnetic field is applied perpendicular to the path of charged particles in a bubble chamber. What is the radius of curvature of the path of a 10 MeV proton in this field? Neglect any slowing along its path.

What energy is released in this decay : Assuming the residual nucleus is formed in its ground state, how much energy goes to the α particle?

What is your expected rate of return on this portfolio : As an investor, you saw an opportunity to invest in a new security with expected rate of return of 20%. Wanting to invest more than you had, you sold another security short with an expected rate of return of 6%. The total amount you sold short was $2..

What is unreasonable about the assumption : A physicist scatters γ rays from a substance and sees evidence of a nucleus 7.5×10-13 m in radius.

Debt-to-equity ratio-what is the value of the firm : You are going to value Lauryn’s Doll Co. using the FCF model. After consulting various sources, you find that Lauryn has a reported equity beta of 1.5, a debt-to-equity ratio of .4, and a tax rate of 30 percent. Assume her FCF is expected to grow at ..

Discuss the ethical implications of affirmative action : Discuss a brief history of affirmative action in the workplace.Describe the pros and cons of affirmative action.Argue one way or another the concept of "reverse discrimination" making sure to note what protection is afforded all classes by Title VI..

What is unreasonable about this result : A frazzled theoretical physicist reckons that all conservation laws are obeyed in the decay of a proton into a neutron, positron, and neutrino (as in β+ decay of a nucleus) and sends a paper to a journal to announce the reaction as a possible end ..

User Account

All Pages