Calculate the expected return on a portfolio that contains 30% of a stock with an expected...

Question

Question

Calculate the expected return on a portfolio that contains 30% of a stock with an expected return of -4% and 70% of a stock w

business finance

Add a comment Improve this question Transcribed image text

Answer 1

Answer #1

Expected return is the weighted average of the return of constituents.

Expected return = w1 * r1 + w2 * r2

Expected return = 30% * -4% + 70% * 7%

Expected return = -1.2% + 4.9%

Expected return = 3.70%

Add a comment

Answer 2

Similar Homework Help Questions

Calculate the expected return on a portfolio that contains 30% of a stock with an expected...

Calculate the expected return on a portfolio that contains 30% of a stock with an expected return of 5% and 70% of a stock with an expected return of 6%. (Enter your answer as a percentage rounded to 2 decimal places. For example, enter 1.53% instead of .0153.) Your Answer: Question 9 options: Answer units
Please don't forget UNITS Calculate the expected return on a portfolio that contains 30% of a...

Please don't forget UNITS Calculate the expected return on a portfolio that contains 30% of a stock with an expected return of -3% and 70% of a stock with an expected return of 11%. (Enter your answer as a percentage rounded to 2 decimal places. For example, enter 1.53% instead of .0153.) Your Answer: Answer units
Question 19 (1 point) Calculate the expected return on a stock with a beta of 1.19....

Question 19 (1 point) Calculate the expected return on a stock with a beta of 1.19. The risk-free rate of return is 2% and the market portfolio has an expected return of 9%. (Enter your answer as a decimal rounded to 4 decimal places, not a percentage. For example, enter .0153 instead of 1.53%) Your Answer Answer

Assume that a stocks had an expected return of 12.00 percent and a standard deviation of 7.00 percent

Question 8Assume that a stocks had an expected return of 12.00 percent and a standard deviation of 7.00 percent. What is the low end of returns would you expect to see 95 percent of the time? (Enter your answers as a percentage rounded to 2 decimal places. For example, enter 8.43% instead of 0.0843) Question 10 Calculate the expected return on a portfolio that contains 30% of a stock with an expected return of -1% and 70% of a stock with an...
Calculate the expected return on a stock with a beta of 1.19. The risk-free rate of...

Calculate the expected return on a stock with a beta of 1.19. The risk-free rate of return is 4% and the market portfolio has an expected return of 8%. (Enter your answer as a percentage. For example, enter 1.53% instead of .0153.
Please don't forget UNITS Calculate the expected return on a stock with a beta of 1.10....

Please don't forget UNITS Calculate the expected return on a stock with a beta of 1.10. The risk-free rate of return is 3% and the market portfolio has an expected return of 9%. (Enter your answer as a percentage. For example, enter 1.53% instead of .0153.) Your Answer: Answer units

Question 8 (0.2 points) Consider the following probability distribution of returns on stock XYZ. What is...

Question 8 (0.2 points) Consider the following probability distribution of returns on stock XYZ. What is the expected return of stock XYZ? (Enter your answer as a percentage rounded to 2 decimal places. For example, enter 8.43%, instead of 0.0843) Probability Return 0.20 -3% 0.40 12% 0.40 27% Your Answer: Answer units View hint for Question 8 Question 9 (0.2 points) Calculate the expected return on a portfolio that contains 30% of a stock with an expected return of 1%...
26) A portfolio has 40% invested in stock A and the rest invested in stock B....

26) A portfolio has 40% invested in stock A and the rest invested in stock B. If stock A has a beta of 1.3 and stock B has a beta of 0.9, what’s the beta of the portfolio? 27) Calculate the standard deviation of a portfolio that contains 40% of one stock with a standard deviation of 27% and 60% of another stock with a standard deviation of 13% and the correlation of their stock returns is 0.9. (Enter your...
i keep getting these answer unit problems wrong, am I suppose to percent percent in the...

i keep getting these answer unit problems wrong, am I suppose to percent percent in the answer box and percent in the unit box? because the other way I keep missing problems Question 5 (1 point) Calculate the expected return on a portfolio that contains 30% of a stock with an expected return of 3% and 70% of a stock with an expected return of 10%. (Enter your answer as a percentage rounded to 2 decimal places. For example, enter...

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...

Calculate the expected return on a portfolio that contains 30% of a stock with an expected...

Homework Answers