Question7 10 pts Marshall owns a portfolio which has an expected annual return of 14.55 percent....
Consider an investor who owns two stocks. Google Inc. (GOOGL) has an expected return of 8 percent, and the investor owns $15,000 worth of the stock and he also owns $10,000 of Amazon Inc. (AMZN), which has an expected return of 6 percent. What is the expected return of his portfolio? The correlation between the two stocks is ? = ‒ 0.4. What is the standard deviation of the portfolio if the standard deviations of the two stocks are ??????...
You have a portfolio worth $88,500 that has an expected return of 11 percent. The portfolio has $17,900 invested in Stock O, $25,700 invested in Stock P, with the remainder in Stock Q. The expected return on Stock O is 15.6 percent and the expected return on Stock P is 12.3 percent. What is the expected return on Stock Q? 13.07% 11.30% 9.83% 10.52% 8.42%
Two-stock Portfolio Stock A has an expected return of 12.50 percent and a standard deviation of 25.50 percent. Stock B has an expected return of 7.25 percent and a standard deviation of 30.45 percent. The correlation coefficient between Stock A and B is 0.23. The optimal weight of Stock A in a portfolio consisting of these two stocks is estimated to be _ , and the standard deviation of this portfolio is estimated to be Select one: O a. 61.35%;...
You have a portfolio worth $53,500 that has an expected return of 12.9 percent. The portfolio has $16,500 invested in Stock 0, $24,300 invested in Stock P, with the remainder in Stock Q. The expected return on Stock O is 17.7 percent and the expected return on Stock P is 10.9 percent. What is the expected return on Stock Q? Multiple Choice Ο 12.90% Ο 10.49% Ο 11.44% Ο 13.83% Ο 12.24%
John's current portfolio of S500,000 is invested as follows: Expected annual Current Value Annual standard return $100,000 Bonds 12% S250,000 HSBC shares 8% 12% S150,000 SaSa shares 10% 18% John soon expects to receive a gratuity of S200,000 and plans to invest the entire amount in an index fund that best complements the current portfolio. John is considering the following four index funds. His selection criteria are to maintain or increase the expected return of the current portfolio and maintain...
An investment, which has an expected return of 11.43 percent, is expected to make annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate of 1.05 percent per year. The cash flow in 1 year from today is expected to be 19,090 dollars. What is the present value (as of today) of the cash flow that is expected to be made in...
9. An investment, which has an expected return of 18.29 percent, is expected to make annual cash flows forever. The first annual cash flow is expected in 1 year and all subsequent annual cash flows are expected to grow at a constant rate of 5.03 percent per year. The cash flow in 1 year from today is expected to be 28,390 dollars. What is the present value (as of today) of the cash flow that is expected to be made...
A portfolio consists of Stocks A and B and has an expected return of 11.6 percent. Stock A has an expected return of 17.8 percent while Stock B is expected to return 8.4 percent. What is the portfolio weight of Stock A? 29.87% 61.98% 32.58% 34.04% 67.42%
A portfolio has expected return of 13.2 percent and standard deviation of 18.9 percent. Assuming that the returns of the portfolio are normally distributed, what is the probability that, in any given year, the return of the portfolio will be greater than -5.7 percent. A. 0.950 B. 0.840 C. 0.680 D. 0.975
Platinum Water Consulting stock has an expected annual return of 10 percent. The stock is currently priced at 48.16 dollars per share and has an expected dividend yield of 6.47 percent. What is the price of the stock expected to be in 1 year?