Problem 5, 14 pts] With the TFSA limit at $6,000 for this year, the total room...

Question

Question

Answer 1

Answer #1

Answer:

Total Investable amount I=$63500

Investment in stock 1 w1=20%

Return from stock 1 r1=12%

Investment in stock 2 w2=30500/63500=48.0%

Return from stock 2 r2=25%

Investment in stock 3 w3=100%-20%-48.0%=32%

Return from stock 3 r3=20%

Expected return from portfolio = w1*r1+w2*r2+w3*r3=20%*12%+48%*25%+32%*20%=20.80%

Answer 2

Similar Homework Help Questions

With the TFSA limit at $6,000 for this year, the total room available in 2019 for...

With the TFSA limit at $6,000 for this year, the total room available in 2019 for you since you have never contributed and has been eligible for the TFSA since its introduction in 2009 is $63,500. Thus, you decide to put 20% of your money into a stock with an expected return of 12%, $30,500 into a stock with an expected return of 25%, and the rest into a stock with an expected return of 20%. What is the expected...
14 Srilal ) You have $62,000. You put 15% of your money in a stock with...

14 Srilal ) You have $62,000. You put 15% of your money in a stock with an expected return of 14%, $34,0 with an expected return of 18%. What is the expected return of your portfolio? The expected return of your portfolio is %. (Round to two decimal places.) -% of your money in a stock with an expected return of 14%, $34,000 in a stock with an expected return of 1 %. What is the expected return of your...
X P 12-5 (similar to) Question Help You have $61,000. You put 20% of your money...

X P 12-5 (similar to) Question Help You have $61,000. You put 20% of your money in a stock with an expected return of 10%, $31,000 in a stock with an expected return of 18%, and the rest in a stock with an expected return of 19% What is the expected return of your portfolio? The expected return of your portfolio is %. (Round to two decimal places.)

You have $70,000. You put 20% of your money in a stock with an expected return...

You have $70,000. You put 20% of your money in a stock with an expected return of 10%, $35,000 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? The expected return of your portfolio is %. (Round to two decimal places.)
Question 34 1 pts You put half of your money in a stock portfolio that has...

Question 34 1 pts You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 20%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 14%. The stock and bond portfolios have a correlation of 50. The standard deviation of the resulting portfolio will be more than 14% but less than 17% equal to...
You have $62,000. You put 20% of your money in a stock with an expected return...

You have $62,000. You put 20% of your money in a stock with an expected return of 13%, $38,000 in a stock with an expected return of 16%, and the rest in a stock with an expected return of 22%. What is the expected return of your portfolio? The expected return of your portfolio is %. (Round to two decimal places.)

You have $59,000. You put 24% of your money in a stock with an expected return...

You have $59,000. You put 24% of your money in a stock with an expected return of 13%, $37,000 in a stock with an expected return of 16%, and the rest in a stock with an expected return of 19%. What is the expected return of your portfolio? The expected return of your portfolio is Џ96. (Round to two decimal places.)
You put half of your money in a stock portfolio that has an expected return of...

You put half of your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%. You put the rest of your money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock and bond portfolios have a correlation of .55 and TB or Rf is 2%. What is the SR of the resulting portfolio?
You have $61,000. You put 24% of your money in a stock with an expected return...

You have $61,000. You put 24% of your money in a stock with an expected return of 12%, $32,000 in a stock with an expected return of 13%, and the rest in a stock with an expected return of 22%. What is the expected return of your portfolio?

Homework help!! You have $66,000. You put 19% of your money in a stock with an...

Homework help!! You have $66,000. You put 19% of your money in a stock with an expected return of 10%, $34,000 in a stock with an expected retum of 14%, and the rest in a stock with an expected return of 19%. What is the expected return of your portfolio? The expected return of your portfolio is %. (Round to two decimal places.)