Answered step by step

Verified Expert Solution

Link Copied!

Question

1 Approved Answer

Posted on Apr 04, 2023

You own three stocks- Stock A is 25% of your portfolio and is expected to make 10%, stock B is 25% of your portfolio and

You own three stocks- Stock A is 25% of your portfolio and is expected to make 10%, stock B is 25% of your portfolio and is expected to make 25% and stock C which is 50% of your portfolio and is expected to make 15%.

What is the expected return of this portolio?

Step by Step Solution

★★★★★

3.57 Rating (154 Votes )

There are 3 Steps involved in it

Step: 1

ANSWER Solution Weights Expected return Stock A 25 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

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

Recommended Textbook for

Foundations of Finance The Logic and Practice of Financial Management

Authors: Arthur J. Keown, John D. Martin, J. William Petty

8th edition

132994879, 978-0132994873

More Books

Students also viewed these Finance questions

Question

★★★★★

KYC's stock price can go up by 15 percent every year, or down by 10 percent. Both outcomes are equally likely. The risk free rate is 5 percent, and the current stock price of KYC is 100. (a) Price a...

Answered: 1 week ago

Question

★★★★★

You have graduated from the university and started working in an investment bank as a junior analyst. In your weekly meeting today, your manager asked you to analyze investment opportunities for a...

Answered: 1 week ago

Question

★★★★★

The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...

Answered: 1 week ago

Question

★★★★★

International Accounting Standard No. 21, "The Effects of Changes in Foreign Exchange Rates," deals with foreign currency. It was originally issued in 1983 and was revised and reissued in 1993 as...

Answered: 1 week ago

Question

★★★★★

Explain the relationship between substantive tests of transactions for the acquisition and payment cycle and tests of details of balances for the verification of prepaid insurance.

Answered: 1 week ago

Question

★★★★★

On April 1, 2022, a corporation with a December 31 taxation year purchased a three-year investment certificate for $20,000. The certificate pays interest only at the end of the three-year term, but...

Answered: 1 week ago

Question

★★★★★

1. Use a checking system to be sure you call on and include all students.

Answered: 1 week ago

Question

★★★★★

James Equipment Company sells computers for $1,500 each and also gives each customer a 2-year warranty that requires the company to perform periodic services and to replace defective parts. During...

Answered: 1 week ago

Question

★★★★★

is produced as a result of byte code. Select one: a . java file b . class file c . Source file d . None of these

Answered: 1 week ago

Question

★★★★★

Consider the Markov chain in Figure 11.32. There are two recurrent classes, R 1 = {1, 2}, and R 2 = {5, 6, 7}. Assuming X 0 = 4, find the probability that the chain gets absorbed to R 1 . 1 S AL 1 1...

Answered: 1 week ago

Question

★★★★★

The 1, 2, 3 year oil forward trade at F0,1 = $115; F0,2 = $110; F0,3 = $105 per barrel. The 1, 2, 3 year zero-coupon bonds trade at (face value $1000) P0,1 = 980.39; P0,2 = 951.84; P0,3 = 915.23....

Answered: 1 week ago

Question

★★★★★

Innovation and service quality are central issues in business performance. This study hypothesizes that customer participation mediates the relationship innovation adoption and service quality and...

Answered: 1 week ago

Question

★★★★★

Consider the operation ProperPreOrSuffix(L) on languages over the al- phabet = {a, b, c}. ProperPreOrSuffix(L) = {x | w L, y = and w = xy or w = yx} Show that regular languages are closed under the...

Answered: 1 week ago

Question

★★★★★

Addressing A large organisation has a CIDR block (192.168.128.0/18) and would like to give one subnet to each department as shown below. Develop a variable-length addressing scheme that best fits the...

Answered: 1 week ago

Question

★★★★★

Context: You are a Sales Account Manager and you manage a book of business made up of 100 restaurants (brands). Your main priority is Client Retention and Growth. You want restaurant businesses to...

Answered: 1 week ago

Question

★★★★★

Question1 diversity in the workplace. Please research 6 benefits of having a diverse workforce. Explain in detail how each of the benefits enable an organization to become more competitive and...

Answered: 1 week ago

Question

★★★★★

Please give me an example code in Python 3.7. Thank you very much for your help. 11. Write a function named safe input (prompt, type) that works like the Python input function, except that it only...

Answered: 1 week ago

Question

★★★★★

Briefly discuss the implications of the financial statement presentation project for the reporting of stockholders equity.

Answered: 1 week ago

Question

★★★★★

Distinguish between the money and capital markets.

Answered: 1 week ago

Question

★★★★★

What are the markets and mechanics involved in generating simple arbitrage profits?

Answered: 1 week ago

Question

★★★★★

In Problem 3- 14, you were asked to prepare a statement of cash flows for Pamplin Inc. Pamplins financial statements are provided again below. Using this information, compute the firms free cash...

Answered: 1 week ago

Question

★★★★★

Deanna is paid a base salary plus commission. On sales of $27,000 and $35,500 in two successive months, her gross pay was $2815.00 and $3197.50, respectively. What are her base salary and commission...

Answered: 1 week ago

Question

★★★★★

The annual net income of the Todd Bros. partnership is distributed so that Ken receives $15,000 more than 80% of Hughs share. How should a net income of $98,430 be divided between the partners?

Answered: 1 week ago

Question

★★★★★

Albion Distributors revenues and expenses for the fiscal year just completed were $2,347,000 and $2,189,000, respectively. a. If in the current year revenues rise by 10% but expense increases are...

Answered: 1 week ago

Previous Question Next Question