ZuoTi.Pro
Question

You form a portfolio of stocks. Stock A has an expected return of 4.0%, Stock B...

You form a portfolio of stocks. Stock A has an expected return of 4.0%, Stock B has an expected return of 5.0%, and Stock C has an expected return of 11.9%. If 7% of your portfolio is invested in stock A, and 27% of your stock is invested in Stock C, what is your expected portfolio return?

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Investment in stock B = 100% - 27% - 7% = 66%

expected portfolio return = 0.07*0.04 + 0.66*0.05 + 0.27*0.119

expected portfolio return = 0.0028 + 0.033 + 0.03213

expected portfolio return = 0.0679 or 6.79%

0 0
Add a comment
Know the answer?
Add Answer to:
You form a portfolio of stocks. Stock A has an expected return of 4.0%, Stock B...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • You form a portfolio of stocks. Stock A has an expected return of 2.8%, Stock B...

    You form a portfolio of stocks. Stock A has an expected return of 2.8%, Stock B has an expected return of 4.4%, and Stock C has an expected return of 7.6%. If 6% of your portfolio is invested in stock A, and 35% of your stock is invested in Stock C, what is your expected portfolio return? (Enter your response as a percentage with two decimal places, ex: 12.34)

  • You form a portfolio of stocks. Stock A has an expected return of 2.8%, Stock B...

    You form a portfolio of stocks. Stock A has an expected return of 2.8%, Stock B has an expected return of 4.4%, and Stock C has an expected return of 7.6%. If 6% of your portfolio is invested in stock A, and 35% of your stock is invested in Stock C, what is your expected portfolio return? (Enter your response as a percentage with two decimal places, ex: 12.34)

  • You form a portfolio of stocks. Jerry Stock has an expected return of 10.8%, Bob Stock...

    You form a portfolio of stocks. Jerry Stock has an expected return of 10.8%, Bob Stock has an expected return of 3.6%, and Phil Stock has an expected return of 1.5%. If 35% of your portfolio is invested in Jerry Stock, and 38% of your stock is invested in Phil Stock, what is your expected portfolio return? (Enter your response as a percentage with two decimal places, ex: 12.34)

  • You form a portfolio of stocks. Stock A has a beta of 2.5, Stock B has...

    You form a portfolio of stocks. Stock A has a beta of 2.5, Stock B has a beta of 0.3, and Stock C has a beta of 2.2. If 0% of your portfolio is invested in stock A, and 0% of your stock is invested in Stock B, what is your portfolio beta? (Enter your response to two decimal places ex: 1.23)

  • You form a portfolio of stocks. Stock A has a beta of 0.9, Stock B has...

    You form a portfolio of stocks. Stock A has a beta of 0.9, Stock B has a beta of 1.8, and Stock C has a beta of 1.3. If 13% of your portfolio is invested in stock A, and 45% of your stock is invested in Stock B, what is your portfolio beta? (Enter your response to two decimal places ex: 1.23)

  • Consider a portfolio that contains two stocks. Stock "A" has an expected return of 10% and...

    Consider a portfolio that contains two stocks. Stock "A" has an expected return of 10% and a standard deviation of 20%. Stock "B" has an expected return of -10% and a standard deviation of 25%. The proportion of your wealth invested in stock "A" is 60%. The correlation between the two stocks is 0. What is the expected return of the portfolio? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response...

  • 2. Portfolio Expected Return (L01) You own a portfolio that has $2,650 invested in Stock A...

    2. Portfolio Expected Return (L01) You own a portfolio that has $2,650 invested in Stock A and $4,450 invested in Stock B. If the expected returns on these stocks are 8 percent and 11 percent, respectively, what is the expected return on the portfolio?

  • Question 16 1 pts You form a portfolio of stocks. Stock A has a beta of...

    Question 16 1 pts You form a portfolio of stocks. Stock A has a beta of 1.7. Stock B has a beta of 0.7, and Stock C has a beta of 2.4. If 0 % of your portfolio is invested in stock A, and 0 % of your stock is invested in Stock B, what is your portfolio beta? (Enter your response to two decimal places ex: 1.23)

  • You are considering investing in three stocks with the following expected returns: Stock A: 7% Stock...

    You are considering investing in three stocks with the following expected returns: Stock A: 7% Stock B: 12% Stock C: 20%. What is the expected return on the portfolio if an equal amount is invested in each stock? What would be the expected return if 50 percent of your funds is invested in stock A and the remaining funds are split evenly between stocks B and C?

  • You have a three-stock portfolio. Stock A has an expected return of 14 percent and a...

    You have a three-stock portfolio. Stock A has an expected return of 14 percent and a standard deviation of 35 percent, Stock B has an expected return of 18 percent and a standard deviation of 53 percent, and Stock C has an expected return of 17 percent and a standard deviation of 35 percent. The correlation between Stocks A and B is .07. between Stocks A and C is 20, and between Stocks B and C is 19. Your portfolio...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT
ADVERTISEMENT