Question
Sophia is considering setting up an investment portfolio. She has $10,000 cash on hand and would like to spend $3758 on Share A and the
Sophia is considering setting up an investment portfolio. She has $10,000 cash on hand and would like to spend $3758 on Share A and the remaining on Bond B. The market price for the share today is $29. She also has the following expectation on the share price and bond return in 6 months time. Assume no coupon or dividend is received during the period of holding.
| Probability | Share A Price | Bond B Return |
| 60% | $35 | -2% |
| 40% | $25 | 5% |
Sophia wants to use the below formula to calculate the expected return of her portfolio.
Calculate the following variables in the formula above.
Round your answer to the nearest 0.01% (2dp).
x1=Answer%
x2=Answer%
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The Critical Handbook Of Money Laundering Policy Analysis And Myths
Authors: Petrus C. Van Duyne, Jackie H. Harvey, Liliya Y. Gelemerova
1st Edition
1137523972, 978-1137523976
