Portfolio Return is equal to the weighted average return
= Return on Stock 1*Weight of Stock 1 + Return on Stock 2*Weight of Stock 2
= 17%*40% + 21%*60%
= 19.4%
P 12-2 (similar to Fremort nterprises has an expected return of 1 7% and Laure hurst...
Fremont Enterprises has an expected return of 19% and Laurelhurst News has an expected return of 20%. If you put 48% of your portfolio in Laurelhurst and 52% in Fremont, what is the expected return of your portfolio? The expected return on the portfolio is %. (Rounded to two decimal places.)
P 12-18 (similar to) 8 You have a portfolio with a standard deviation of 28% and an expected return of 20%. You are considering adding one of the two stocks in the following table. If after adding the stock you will have 25% of your money in the new stock and 75% of your money in your existing portfolio, which one should you add? Expected Return Standard Correlation with Your Portfolio's Returns Deviation Stock A 16% 21% 0.2 Stock B...
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.)
$36 000 n a stock w You have S55,000. You put 23% of your money in a stock with an expected return of 129 with an expected return of 21%. What is the expected return of your portfolio? n an expected return of13%, and he est a stock The expected return of your portfolio is %. (Round to two decimal places.) $36 000 n a stock w You have S55,000. You put 23% of your money in a stock with...
7 A stock has a beta of 1.12 and an expected return of 10.8 percent. A risk-free asset currently earns 27 percent a. What is the expected return on a portfolio that is equally invested in the two assets? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g, 32.16.) b. If a portfollo of the two assets has a beta of .92, what are the portfolio welghts? (Do not round intermediate...
P 12-18 (similar to) Question Help You have a portfolio with a standard deviation of 26% and an expected return of 15% You are considering adding one of the two stocks in the following table. If after adding the stock you will have 20 % of your money in the new stock and 80 % of your money in your existing portfolio, which one should you add? Еxpected Standard Correlation with Your Portfolio's Retuns Return Deviation Stock A Stock B...
P 12-28 (book/static) Suppose the risk-free return is 4.0% and the market portfolio has an expected return of 10.0% and a standard deviation of 16%, Johnson & Johnson Corporation stock has a beta of 0.32 what is its expected return? The expected return i%. (Round to two decimal places.)
Problem 7-18 (similar to) Question Help (Bondholders' expected rate of return) You own a bond that has a par value of $1,000 and matures in 12 years. It pays an annual coupon rate of 12 percent. The bond currently sells for $1.200. What is the band's expected rate of return? The bond's expected rate of return is % (Round to two decimal places.)
1. You buy 100 shares of Tidepool Co. for $36each and 205 shares of Madfish, Inc., for $18 each. What are the weights in your portfolio? The weight of Tidepool Co. stock in the portfolio is __ %. (Round to one decimal place.) 2. Fremont Enterprises has an expected return of 14% and Laurelhurst News has an expected return of 21%. If you put 50% of your portfolio in Laurelhurst and 50% in Fremont, what is the expected return of...
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...