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please use the formulas from the formula sheet 24) You hold the following portfolio: $3,200 in stock Longs, $17,000 in stock Princeton and $11,500 in
please use the formulas from the formula sheet
24) You hold the following portfolio: $3,200 in stock Longs, $17,000 in stock Princeton and $11,500 in stock Antero. You expect the following rates of return in the coming year: 8.5% for stock Longs; 4.5% for stock Princeton and 2.5% for stock Antero. What is your portfolio's expected rate of return for the coming year? 2.4% 4.2% 2.1% 3.5% Investment Return: Geometric Return / Cumulative Annual Growth Rate (CAGR): CAGR=[BeginValueEndValue]11 Portfolio Return: PortfolieExpectedRateofRefurmE(rpethin)=[W1E(r1)]+[W2E(r2)]+[W3E(r2)]++[WnE(rn)] Capital Asset Pricing Model (CAPM): E(rAsset/1)=rt+Asset/[E(rMarket)rf] Bond Valuation / Pricing: Conceptual Formule: Fisher Effect for interest Rates: rnominal=rroal+rinflation Discounted Dividend Stock Valuation: Dividend growth rate: g=bROE Preferred Stock Valuation: Preferred Stock =MarketsRequiredYieldonPreferredStockAnnualPreferredStockDividend Step by Step Solution
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