Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

question 1 : You have $ 5 8 comma 0 0 0 . You put 2 1 % of your money in a stock with

question 1 : You have $58 comma 000. You put 21% of your money in a stock with an expected return of 12%,$39 comma 000 in a stock with an expected return of 16%, and the rest in a stock with an expected return of 20%. What is the expected return of your portfolio? Question 2: You have just purchased a share of stock for $ 21.18. The company is expected to pay a dividend of $ 0.66 per share in exactly one year. If you want to earn a 10.5% return on your investment, what price do you need if you expect to sell the share immediately after it pays the dividend?

Step by Step Solution

There are 3 Steps involved in it

Step: 1

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

blur-text-image

Step: 3

blur-text-image

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

Quantitative Analysis for Management

Authors: Barry Render, Ralph M. Stair, Michael E. Hanna, Trevor S. Ha

12th edition

133507335, 978-0133507331

More Books

Students also viewed these Finance questions

Question

What risks come with the reliance on authority for knowledge?

Answered: 1 week ago