Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Feb 15, 2024

A portfolio is invested 20 percent in Stock G, 60 percent in Stock J, and 20 percent in Stock K. The expected returns on

A portfolio is invested 20 percent in Stock G, 60 percent in Stock J, and 20 percent in Stock K. The expected returns on these stocks are 12 percent, 20 percent, and 31 percent, respectively. What is the portfolio's expected return?

Step by Step Solution

★★★★★

3.48 Rating (158 Votes )

There are 3 Steps involved in it

Step: 1

To calculate the portfolios expected return you multiply the expected return of each individu... blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

Step: 3

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance Core Principles And Applications

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan

6th Edition

1260571122, 978-1260571127

More Books

Students also viewed these Finance questions

Question

Worksheet 1-Using the Derivative to Solve Motion Problems 1. Analyzing the Motion A 2 kg object's position as a function of time is given by the equation: x(t)=2t33t + t +1 15 10 5 A = 0 Where t is...

Answered: 1 week ago

Question

A portfolio is invested 12 percent in Stock G, 52 percent in Stock J, and 36 percent in Stock K The expected returns on these stocks are 10 percent, 16 percent, and 20 percent, respectively What is...

Answered: 1 week ago

Question

★★★★★

1. Security A has expected return of 17.6% and beta of 1.4. If the risk-free rate is 6%, what is the reward-to-risk rate for Security A? Question 2 The common stock of Detroit Engines has a beta of...

Answered: 1 week ago

Question

★★★★★

Built-Tite uses job order costing. The T-account below summarizes Factory overhead activity for the current year. Factory Overhead Debit Credit 16,200 106,600 25,200 60,200 1. Compute total applied...

Answered: 1 week ago

Question

★★★★★

What is the standard maximization form of a linear programming problem?

Answered: 1 week ago

Question

★★★★★

Foreman Inc. issued $800,000 of 20-year, 10% bonds on January 1, 2017 at 102. Interest is payable semi-annually on July 1 and January 1. The company uses the straight-line method of amortization for...

Answered: 1 week ago

Question

★★★★★

If for three independent events A, B, and C of a sample space, we know that P(AB) = 0.3, P(AC) = 0.48, P(BC) = 0.1, find the probability of the event A B C.

Answered: 1 week ago

Question

★★★★★

Identify whether each of the following characteristics is an advantage or a disadvantage of the corporate form of business: 1. Ease of Transfer of ownership 2. Taxation 3. Separate legal entity 4....

Answered: 1 week ago

Question

★★★★★

DATA Dpsl 75 nm Latex diameter Polystyrene density Cpsl %10 Latex mass fraction Water densitypsl 1.05 gm mL w 1 gm mL Properties of the adsorbing polymer CPAM I 100 mL 4 gm Intrinsic Viscosity...

Answered: 1 week ago

Question

★★★★★

A person sees a red light from another person working on a radio tower. The light is consisuen with having what energy frequency? 18 a. 1 x 10Hz b. 2x105 Hz 12 c. 3 x 10 Hz d. 4 x 10 Hz e. None of...

Answered: 1 week ago

Question

★★★★★

please show work and make sure the answer is correct. please show work and make sure the answer is correct. help me and thank you. Problem 9 (20 point) Muse Company uses the periodic inventory method...

Answered: 1 week ago

Question

★★★★★

The following tableliststheconcentration of E. coli bacteria( C , mg/L) at any given time ( t , min) in a swimming area. Time, t (min) 0 4 8 12 16 20 24 28 Concentration, C (mg/L) 0 2.5 3.2 3.4 3.5...

Answered: 1 week ago

Question

★★★★★

Vulnerability scanning can be a critically important step to ensure a network is secure. For a penetration tester, are there any risks to conducing vulnerability scanning. What liabilities or...

Answered: 1 week ago

Question

★★★★★

A. Make a model for your Jamba Juice e commerce conversion funnel with at least 6 steps. Explain why you chose these six steps. Make some numeric targets (examples) for each step in your conversion...

Answered: 1 week ago

Question

★★★★★

Fiscal Years Ended January 29, 2021 January 31, 2020 Current Earnings Net sales Amount % Sales Amount % Sales February 1, 2019 Amount % Sales $ 89,597 100.00% S 72,148 100.00 % $ 71,309 100.00% Cost...

Answered: 1 week ago

Question

★★★★★

Youve observed two CEOs balancing the work of governing and guiding and using themselves as leaders to drive change. Now think of yourself and assess your general capacity to balance between guiding...

Answered: 1 week ago

Question

★★★★★

Saginaw Inc. completed its first year of operations with a pretax loss of $512,500. The tax return showed a net operating loss of $656,500, which the company will carry forward. The $144,000 booktax...

Answered: 1 week ago

Question

★★★★★

Digital Fruit is financed solely by common stock and has outstanding 25 million shares with a market price of $10 a share. It now announces that it intends to issue $160 million of debt and to use...

Answered: 1 week ago

Question

★★★★★

Security F has an expected return of 11 percent and a standard deviation of 47 percent per year. Security G has an expected return of 14 percent and a standard deviation of 63 percent per year. a....

Answered: 1 week ago

Question

★★★★★

The most recent financial statements for Beckett Co. are shown here: Assets and costs are proportional to sales. The company maintains a constant 30 percent dividend payout ratio and a constant...

Answered: 1 week ago

Question

★★★★★

The market portfolio has an expected return of 10.7 percent and a standard deviation of 19 percent. The risk-free rate is 3.2 percent. a. What is the expected return on a well-diversified portfolio...

Answered: 1 week ago

Question

★★★★★

How can the utility-maximizing rule be used to explain the substitution and income effect?

Answered: 1 week ago

Question

★★★★★

Discuss the pros and cons of legalizing drugs such as heroin or cocaine from an economic perspective using the concepts of supply, demand, and elasticity.

Answered: 1 week ago

Question

★★★★★

Pure monopoly guarantees economic profits. Discuss whether this is a valid statement.

Answered: 1 week ago

Previous Question Next Question