Toyota Corp.'s stock is $30 per share. Its expected return is 21% and variance is 13%....
Toyota Corp.'s stock is $30 per share. Its expected return is 21% and variance is 13%. Honda Corp.'s stock is $21 per share. Its expected return is 16% and variance is 4%. Benz Corp.'s stock is $40 per share. Its expected return is 11% and variance 7%. What would be the expected return of a portfolio consisting of 50% Toyota and 50% Honda?
Homework Answers
What would be the expected return of a portfolio consisting of 50% Toyota and 50% Honda?
The return of a portfolio is the weighted average return of the securities which constitute the porfolio
| Stock | Weight | Expected Return (%) | Weight*Expected Return |
| Toyota | 0.50 | 21 | 10.50 |
| Honda | 0.50 | 16 | 8.00 |
Portfolio Return = Weight*Expected
Return
= 10.50+8
= 18.50%
Add Answer to:
Toyota Corp.'s stock is $30 per share. Its expected return is 21% and variance is 13%....
4，Toyota Corp.'s stock is $30 per share. Its expected return is 25% and variance is 14%....
4，Toyota Corp.'s stock is $30 per share. Its expected return is 25% and variance is 14%. Honda Corp.'s stock is $18 per share. Its expected return is 20% and variance is 4%. Benz Corp.'s stock is $42 per share. Its expected return is 13% and variance 7%. What would be the expected return of a portfolio consisting of 50% Toyota and 50% Honda? ————% * Place your answer in percentage form, say 5.99% and not .0599 5，toyota has an expected...
1 - The return on shares of Valley Transporter is predicted under the following various economic...
1 - The return on shares of Valley Transporter is predicted under the following various economic conditions: Recession -0.12 Normal +0.06 Boom +0.24 If each economy state has the same probability of occurring, what is the variance of the stock? Place your answer in decimal form using four decimal places. 2. The return on shares of the Orange Company are predicted under the following states of nature. The states of nature are all equally likely, and because there are a...
Toyota Corp.'s stock price has a variance of returns equal to 0.0295. Honda Corp.'s stock price...
Toyota Corp.'s stock price has a variance of returns equal to 0.0295. Honda Corp.'s stock price has a variance of returns equal to 0.0505. The covariance between Toyota and Honda is 0.0675. What is the standard deviation of a portfolio consisting of 50% Toyota and 50% Honda?
OWL Question for Quiz #14: Module 7 Problems 10:45 PM Question Status Toyota has an expected...
OWL Question for Quiz #14: Module 7 Problems 10:45 PM Question Status Toyota has an expected return of 20%, and a variance of 0.011 Honda has an expected return of 19%, and a variance of 0.007 The coanance between Toyota and Honda s 0.05 Usn these data, calculate the variance of a portfolio conse ting of 50% Toyota and 50% Honda CHECK ANSWER
Sign Out OWL Question for Quiz #14: Module 7 Problems 1008 PM ist vanance is 5%...
Sign Out OWL Question for Quiz #14: Module 7 Problems 1008 PM ist vanance is 5% Benz Corp's stock is $42 per share its expected return 50% T 10% and var ance 5% what would be the expected return of a portfolio consisting of aand 50% Honda? tion
#11 and #13 (CAPM) The stock is appropriately priced and its expected annual return is 10.4%....
#11 and #13
(CAPM) The stock is appropriately priced and its expected annual return is 10.4%. The annual return on the 30-year Treasury is 3.5%, and the expected annual return on S&P 500 is 13%. What is the stock's beta coefficient? 12. (CAPM) The stock is appropriately priced and its expected annual return is 14.1%. The annual return on the 30-year Treasury is 2.5%, and the expected annual return on S&P 500 is 12%. What is the stock's beta coefficient?...
A company has reported $4 per share in earnings, and maintains a 50% dividend payout ratio....
A company has reported $4 per share in earnings, and maintains a 50% dividend payout ratio. Its book value per share is $25. What is the expected growth rate in dividends? 4% 8% 12% 16% Stormy-seas Corp has just paid a dividend of $3 per share out of earnings of $5 per share. What is the required rate of return on this stock if its book value is $40 and current market price is $52.50? 5% 6% 11% 12% Pirate...
Mariota Corp. just paid a dividend of $3.45 per share on its stock. The dividend growth rate is expected to be 4.05 fore...
Mariota Corp. just paid a dividend of $3.45 per share on its stock. The dividend growth rate is expected to be 4.05 forever and investors require a return of 11.9 percent on this stock. What will the stock price be in 11 years?
s presented with the two following stocks 17. The investor Stock A Stock B Expected Return...
s presented with the two following stocks 17. The investor Stock A Stock B Expected Return Standard Deviation 30% 40% 60% 50% the portfolio that the expected return Assume that the correlation coefficient between the stocks is zero. What stock A invests 30% i A.20% B.37% 07a 18. The investor is presented with the two following stocks: Stock A Stock B Expected Return Standard Deviation 0% 40% 50% 60% Assume that the correlation coefficient between the stocks is zero. What...
The stock of Cacique Corp., is expected to have earnings per share (EPS) next year of...
The stock of Cacique Corp., is expected to have earnings per share (EPS) next year of $6 per share. The required return for its stock is 15%. (a)What is the price of the stock if Cacique retains 50% of its earnings to finance future growth and these funds are invested in projects with a return on equity of 15 percent? Assume that right now Cacique has more projects and it has to retain 70% instead of 50%. What is the...
OWL Question for Quiz #14: Module 7 Problems 10:45 PM Question Status Toyota has an expected return of 20%, and a variance of 0.011 Honda has an expected return of 19%, and a variance of 0.007 The coanance between Toyota and Honda s 0.05 Usn these data, calculate the variance of a portfolio conse ting of 50% Toyota and 50% Honda CHECK ANSWER
Sign Out OWL Question for Quiz #14: Module 7 Problems 1008 PM ist vanance is 5% Benz Corp's stock is $42 per share its expected return 50% T 10% and var ance 5% what would be the expected return of a portfolio consisting of aand 50% Honda? tion
#11 and #13
(CAPM) The stock is appropriately priced and its expected annual return is 10.4%. The annual return on the 30-year Treasury is 3.5%, and the expected annual return on S&P 500 is 13%. What is the stock's beta coefficient? 12. (CAPM) The stock is appropriately priced and its expected annual return is 14.1%. The annual return on the 30-year Treasury is 2.5%, and the expected annual return on S&P 500 is 12%. What is the stock's beta coefficient?...
s presented with the two following stocks 17. The investor Stock A Stock B Expected Return Standard Deviation 30% 40% 60% 50% the portfolio that the expected return Assume that the correlation coefficient between the stocks is zero. What stock A invests 30% i A.20% B.37% 07a 18. The investor is presented with the two following stocks: Stock A Stock B Expected Return Standard Deviation 0% 40% 50% 60% Assume that the correlation coefficient between the stocks is zero. What...
Most questions answered within 3 hours.
-
Industry: Telecommunications in India
Here, you need to discuss the sources of the growth pattern
and...
asked 1 hour ago -
Hydrobromic acid
dissolves solid iron according to the followiaung reaction:
Fe(s)+2HBr(aq)→
FeBr2(aq)+ H2(g)
Part A. What...
asked 2 hours ago -
Verify the following vector identity in SPHERICAL
COORDINATES.
div(curl(A)) = 0
asked 4 hours ago -
The work function (Φ) for a metal is 7.50×10-19 J.
What is the longest wavelength (nm)...
asked 5 hours ago -
1. Would the following procedural changes cause the
calculated mass percent Ni2+ ion in Ni(NH3)nCl2 to...
asked 6 hours ago -
1. Why does the voltage of the capacitor vary with frequency?
where does this missing voltage...
asked 8 hours ago -
p p please write each step out clearly
3. A manager of a company is considering...
asked 6 hours ago -
On October 1, Ebony Ernst organized Ernst Consulting; on October
3, the owner contributed $83,540 in...
asked 8 hours ago -
A.)As an electron moves through a region of space, its speed
decreases from 9.60 × 106...
asked 8 hours ago -
In java with the netbeans program do:
Through object programming
Create a class "ContadorP", which is...
asked 8 hours ago -
Pattern Corporation acquired all of Science
Company's outstanding stock on January 1, 2016 for $600,000 cash....
asked 8 hours ago -
Here are all accounts Tyler Co. maintains.
Tax expenses $4,750
Common stocks $48,840
SG&A expenses $2,500...
asked 8 hours ago