Question
Glen Rice invests the following sums of money in common stocks having expected returns as follows: COMMON STOCK (Ticker Symbol) AMOUNT INVESTED RETURN One-Legged Chair
Glen Rice invests the following sums of money in common stocks having
expected returns as follows:
COMMON STOCK (Ticker Symbol) | AMOUNT INVESTED | RETURN |
One-Legged Chair Company (WOOPS) | $ 6,000 | 14% |
Acme Explosives Company (KBOOM) | 11,000 | 16% |
Ames-to-Please, Inc. (JUDY) | 9,000 | 17% |
Sisyphus Transport Corporation (UPDWN) | 7,000 | 13% |
Excelsior Hair Growth, Inc. (SPROUT) | 5,000 | 20% |
In-Your-Face Telemarketing, Inc. (RINGG) | 13,000 | 15% |
McDonald Farms, Ltd. (EIEIO) | 9,000 | 18% |
a. What is the expected return (percentage) on her portfolio?
b. What would be her expected return if she quadrupled her investment in Excelsior Hair Growth, Inc., while leaving everything else the same?
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Financial Management EMEA Theory And Practice
Authors: Michael Ehrhardt, Roland Fox, Eugene Brigham
2nd Edition
1473760216, 9781473760219
