Question

Eric Poppovich Iinvests money in two stocks for the upcoming year. STOCK: LBJ Corporation (A) Duncan Inc. (B) The correlation between LBJ and Duncan is 0.50 His investment is shown below Expected Return Standard Deviation 20.00% 24.00% # of Shares 46.00 25.00 Price Per Share 36.75 $51.78 5.000% 9.00% What is the expected return for the portfolio in the coming year? Answer Format Percentage Round to: 2 decimal places (Example: 924%. % sign required. Will accept decimal format rounded to 4 decimal places (ex: 0.0924)) Enter Answer Here. Submit Answer +Prev Problem t All Problems Next Probiem

Answer 1

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Home ert Page Layout Formulas Data Review V Add-Ins s Cut aCopy Format Painter AutoSum 11 Arap Text General Fill В า 프. m. a-Δ. Ξミ 迣锂函Merge & Center. $, % , 弼皛Conditional Format. Cell. Insert Delete Format Paste Sort &Find & Filter Select 袖 2 Clear , Formatting ▼ as Table-styles ▼ Styles ▼ ▼ ▼ Clipboard Font Alignment Cells dting LW331 LM LN LO LQ LR LS LT LU LV LW LX LY LZ MA 324 325 326 327 328 329 330 331 332 333 ANSWER E(RpWA RA+WB RB 334 335 336 337 338 339 340 341 ANSWER PORTFOLIO SD 342 WEIGHTS OF 2 STOCK SHARES PRICE VALUE OF SHARES WEIGHTS 46 25 P a 36.75 1690.50 51.78 1294.50 0.56633 WA 0.43367 WB DUNCAN 2985.00 EXPECTED RETURN ON PORTFOLIO E(Rp): RA = 5% RB-9% ASSUME A- LBJ, B DUNCAN 0.56633"(5%)+0.43367(9%)- 6.73% STANDARD DEVIATION OF THE PORTFOLIO 20% 24% 0.5 SDB PORTFOLIO SD SORT ((WAA2*(SDA)A2+(WB)A2 (SDB)A22 WA WB (SDA) (SDB)* (r)) PORTFOLIO SDSQRT ((0.56633)A2 (20)2+(0.43367)A2*(24)A2+2 *0.56633*0.43367 (20)*(24)* (0.5)) 18.83 % capm-portfolio retirement futures margin PV, FV, ANNUITYACC CVPKE BOND HPR REALISED YIELD NPV ROE std costng ECONOMY, BEFORE AFTER BUYBACK Shell 02:31 01-03-2019