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1. Your portfolio consists of $53,000 of stock in Coca-Cola and $29,000 of stock in Pepsi. The expected return on Coca-Cola is 4%, and the
1. Your portfolio consists of $53,000 of stock in Coca-Cola and $29,000 of stock in Pepsi. The expected return on Coca-Cola is 4%, and the expected return of Pepsi is 7%. What is the expected return of your portfolio?
2. Over the past year, FedEx stock has gone from $228.29 to $217.53, and paid a dividend of $12.42. What was the return on FedEx's stock over the past year?
3. A certain stock has a beta of 1.89 and an expected return of 13.47%. The risk-free rate is currenlty 2.73%. What is the current market risk premium?
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