Question

You are going to form a portfolio using the following two companies: Walker Incorporated and Manning Incorporated. You will invest $4,505.00 in Walker Incorporated, and will also invest $5,549.00 in Manning Incorporated. The expected return on Walker Incorporated in the next year is 7.18%, while the expected return on Manning Incorporated is 8.93%. What is the expected return on your portfolio? Submit Answer format: Percentage Round to: 2 decimal places (Example: 9.24%, % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924))

#6 Last year, a fund manager invested in three companies: Allen Dynamics, Bosh Heating, and Creole Plumbing. Below, the results for his investment are shown: # of shares purchased Price per share in 2017 Price per share in 2018 Allen Dynamics 100.00 $10.00 $11.00 Bosh Heating 50.00 $16.00 $18.00 Creole Plumbing 200.00 $5.00 $5.75 What was his total investment in 2017? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted

Answer 1

1). Total Investment = Investment in Walker Incorporated + Investment in Manning Incorporated

= $4,505 + $5,549 = $10,054

Portfolio's Expected Return = [Weight(i) * Return(i)]

=1

= [(4,505/10,054) * 7.18%] + [(5,549/10,054) * 8.93%] = 3.22% + 4.93% = 8.15%

6). Total Investment in 2017 = Investment in Allen Dynamics + Investment in Bosh Heating + Investment in Creole Plumbing

= [100 * $10] + [50 * $16] + [200 * $5]

= $1,000 + $800 + $1,000 = $2,800