Question
May I please get some help with how to work these out...thank you. In order to fund her retirement, Michele requires a portfolio with an
May I please get some help with how to work these out...thank you.
In order to fund her retirement, Michele requires a portfolio with an expected return of0.11 per year over the next 30 years. She has decided to invest in Stocks 1, 2, and 3, with 25 percent in Stock 1, 50 percent in Stock 2, and 25 percent in Stock 3. If Stocks 1 and 2 have expected returns of0.09 and0.10 per year, respectively, then what is the minimum expected annual return for Stock 3 that will enable Michele to achieve her investment requirement?
Lee purchased a stock one year ago for $27. The stock is now worth $34, andthe total return to Lee for owning the stock was0.37. What is thedollar amount of dividends that he received for owning the stock during theyear?
The beta of M Simon Inc., stock is 1.3, whereas the risk-free rate of returnis0.07. If the expected return on the market is0.14, then what isthe expected return on M Simon Inc?
London purchased a piece of real estate last year for $83,900. The real estateis now worth $100,600. If London needs to have a total return of0.23 during the year, then what is the dollar amount of income that she needed tohave to reach her objective?
The risk-free rate of return is currently0.04, whereas the market risk premium is0.07. If the beta of RKP, Inc., stock is 1.9, then what is the expected return on RKP?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
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