What would be the expected return of the portfolio, Finance Basics

Assignment Help:

A Ltd.'s share gives a return of 20% and B Ltd.'s share gives 32% return. Mr. Gotha invested 25% in A Ltd.'s share and 75% of B Ltd.'s shares. What would be the expected return of the portfolio?

Solution:

Portfolio Return = .25 (20) + .75 (32) = 29%

 


Related Discussions:- What would be the expected return of the portfolio

Compute Interest Assignment, Based on the example in Lesson 2, compute your...

Based on the example in Lesson 2, compute your quarterly interest for three years if you deposit $500 at 8 percent, compounded quarterly. Remember to divide the 8 percent by 4 to g

Calculate the percentage of equity of firm sells, Consider an economy with ...

Consider an economy with three dates {t=0, 1, 2}. A firm has assets in place that generate an output (profit) of either 40 in state L or 160 in state H at t=2. Bothe states equally

Financial markets, what are financial markets. why do they exist

what are financial markets. why do they exist

Traditional business of deposit taking and lending, Question 1: i) Disc...

Question 1: i) Discuss  the main risks facing a retail bank in its traditional business of deposit taking and lending? ii) How can a bank manage the risks related to credit

Find the no-arbitrage cost of the european call option, Question: Suppo...

Question: Suppose that a security is presently selling for a price of $65, the nominal interest rate is 8%, and the security volatility is 0.15. a) Determine Delta of a Euro

Drawback of stock repurchases, Drawback of Stock Repurchases 1. High ...

Drawback of Stock Repurchases 1. High price A company may find it not easy to repurchase shares at their recent value and price paid may be higher to the detriment of rem

IS-LM, After read all the available information carefully, prepare a two pa...

After read all the available information carefully, prepare a two page (double-spaced) essay and answer the following questions: Assume that we have the following data: C=100+0.50Y

Finance, Pls help with this + provide references > Briefly outline the mos...

Pls help with this + provide references > Briefly outline the most recent balance of payments experience for China and comment on whether the balance of payments situation will ha

Discuss possible reasons for the merger , Investigate a recent company merg...

Investigate a recent company merger or take-over and: i)  Critically evaluate the means by which managers may determine the bid price in such acquisitions. (You should use the b

Write Your Message!

Captcha
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