What return should you expect on your portfolio

Assignment Help Accounting Basics
Reference no: EM132556920

Question 1 - Suppose you hold a portfolio that consists of 35% in Microsoft Co. stock, 35% in Treasury bills, and 30% Apple Co. stock. Microsoft's beta is 1 and Apple's beta is 0.5. Treasury bills (the risk- free asset) offer a return of 4% and the expected return on the market is 11.5%. Required: As per the capital asset pricing model, what return should you expect on your portfolio?

Question 2 - You have $20,000 to invest in a stock portfolio. Your choices are Stock A, which has a beta of 2, and Stock B, which has a beta of 0.9. The risk-free rate is 3%, and the expected return on the market is 9%. Required: If your goal is to work a portfolio that has an expected return of 13.68%, how much money do you need to invest in Stocks A and B?

Reference no: EM132556920

Questions Cloud

Prepare slide powerpoint presentation : Prepare a six slide PowerPoint Presentation as your post. In this PPT, present the decisions Chuck MacKinnon should present to both the functional
Describe your views about mitchells competency : Describe Mitchell's profile. Describe some of his personality traits and explained what you learned about his mental state at the time of the trial
Analyze your current leadership skills in brief : Analyze your current leadership skills based on what you have learned in this course. Identify 1 leadership theory that would be beneficial to your leadership.
Brand-loyal decision making-repeat purchase decision making : What products generally are associated with brand-loyal decision making and which with repeat-purchase decision making?
What return should you expect on your portfolio : Suppose you hold a portfolio that consists of 35% in Microsoft Co. stock, 35% in Treasury bills, what return should you expect on your portfolio
How much Part IV tax must GIC pay : Gupta Investments Corp. (GIC) was incorporated to be an investment holding company with a December 31 year end. How much Part IV tax must GIC pay
Define organizational development and organizational culture : Prepare an annotated bibliography of articles collected to date on the topic selected. You will be required to prepare an annotated bibliography with some.
What bid price should you submit : Guthrie Enterprises needs someone to supply it with 145,000 cartons of machine screws per year to support its manufacturing
Inventory and staffing : Discuss three inventory factors that you believe could present problems for a business. Outline a strategic plan for hiring and retaining competent,

Reviews

Write a Review

Accounting Basics Questions & Answers

  How much control does fed have over this longer real rate

Hubbard argues that the Fed can control the Fed funds rate, but the interest rate that is important for the economy is a longer-term real rate of interest.   How much control does the Fed have over this longer real rate?

  Coures:- fundamental accounting principles

Coures:- Fundamental Accounting Principles: - Explain the goals and uses of special journals.

  Accounting problems

Accounting problems,  Draw a detailed timeline incorporating the dividends, calculate    the exact Payback Period  b)   the discounted Payback Period. the IRR,  the NPV, the Profitability Index.

  Write a report on internal controls

Write a report on Internal Controls

  Prepare the bank reconciliation for company

Prepare the bank reconciliation for company.

  Cost-benefit analysis

Create a cost-benefit analysis to evaluate the project

  Theory of interest

Theory of Interest: NPV, IRR, Nominal and Real, Amortization, Sinking Fund, TWRR, DWRR

  Liquidity and profitability

Distinguish between liquidity and profitability.

  What is the expected risk premium on the portfolio

Your Corp, Inc. has a corporate tax rate of 35%. Please calculate their after tax cost of debt expressed as a percentage. Your Corp, Inc. has several outstanding bond issues all of which require semiannual interest payments.

  Simple interest and compound interest

Simple Interest, Compound interest, discount rate, force of interest, AV, PV

  Capm and venture capital

CAPM and Venture Capital

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