You hold a portfolio with the following securities: Expected Security Value Beta Return Driscol Corporation 20%...
You hold a portfolio with the following securities:
Expected
Security Value Beta Return
Driscol Corporation 20% 3.20 36.0%
Evening Corporation 40% 1.60 20.0%
Frolic Corporation 40% .20 6.0%
What is the expected return for the portfolio?
| A. | 28.59% | |
| B. | 23.54% | |
| C. | 17.60% | |
| D. | 20.67% |
Homework Answers
Expected return for the portfolio = 20%*36 + 40%*20 + 40%*6
Expected return for the portfolio = 17.60%
Answer
C. 17.60%
Add Answer to:
You hold a portfolio with the following securities: Expected Security Value Beta Return Driscol Corporation 20%...
You hold a portfolio with the following securities: Security Percent of portfolio Return Stock A 54%...
You hold a portfolio with the following securities: Security Percent of portfolio Return Stock A 54% 4.8% Stock B 13% 17.1% Stock C Please calculate it 6.4% Calculate the expected return of portfolio. Round the answers to two decimal places in percentage form.
What is the expected return of a portfolio consisting of 60% security 1 and 40% security...
What is the expected return of a portfolio consisting of 60% security 1 and 40% security 2? What is the beta of a portfolio consisting of 60% security 1 and 40% security 2? What is the standard deviation of a portfolio consisting of 60% security 1 and 40% security 2 if the correlation coefficient between securities is zero? What should be the weight of security 1 in a portfolio consisting of security 1 abd 2 to minimize the portfolios standard...
You own a portfolio consisting of the securities listed above. The expected return for each security...
You own a portfolio consisting of the securities listed above.
The expected return for each security is as shown. What is the
expected return on the portfolio?
Stock W Number of Shares 300 450 100 575 Price per Share $11 19 48 33 Expected Return 8.9% 11.6% 28.4% 12.7% You own a portfolio consisting of the securities listed above. The expected return for each security is as shown. What is the expected return on the portfolio? 10.86 O 14.20 percent...
Problem 6-23 (similar to) Question Help (Portfolio beta and security market line) You own a portfolio...
Problem 6-23 (similar to) Question Help (Portfolio beta and security market line) You own a portfolio consisting of the following stocks: The risk-free rate is 3 percent. Also, the expected return on the market portfolio is 13 percent. a. Calculate the expected return of your portfolio. (Hint: The expected return of a portfolio equals the weighted average of the individual stocks' expected returns, where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta, c. Given...
7. Assume you want to construct a portfolio from the following two securities. What is the...
7. Assume you want to construct a portfolio from the following
two securities. What is the expected return on your portfolio if
you invest $800,000 in Security 1 and $200,000 in Security 2?
Security Expected Return Beta 1 14.0% 1.12 2 10.5% 0.94
A. 13.8% B. 13.6% C. 13.3% D. 12.9% E. 12.3%
7. Assume you want to construct a portfolio from the following two securities. What is the expected return on your portfolio if you invest $800,000 in Security...
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a...
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $15 a share and adding it to your portfolio. Alpha has an expected return of 21.5% and a beta of 1.70. The total value of your current portfolio is $85,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock?...
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a...
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $15 a share and adding it to your portfolio. Alpha has an expected return of 21.5% and a beta of 1.70. The total value of your current portfolio is $85,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock?...
. (Portfolio beta and security market line) You own a portfolio consisting of the following stocks...
. (Portfolio beta and security market line) You own a portfolio consisting of the following stocks The risk-free rate is 4 percent. Also, the expected return on the market portfolio is 9 percent. a. Calculate the expected return of your portfolio (Hint: The expected return of a portfolio equals the weighted average of the individual stocks' expected returns where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta. c. Given the foregoing information, plot the...
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a...
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 22.5% and a beta of 1.20. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock?...
Security #1 #2 Expected Return Standard Deviation Beta 0.10 0.24 0.20 1.25 0.08 0.80 hat is...
Security #1 #2 Expected Return Standard Deviation Beta 0.10 0.24 0.20 1.25 0.08 0.80 hat is the expected return of a portfolio consisting of 60% Security # 1 and 40% Security # 2? elect one: a. 8.20% b. 9.20% c. 10.20% O d. 11.20% Oe. None of the above What is the Beta of a portfolio consisting of 60% Security #1 and 40% Security #2? What is the standard deviation of a portfolio consisting of 60 % Security # 1...
What is the expected return of a portfolio consisting of 60% security 1 and 40% security 2? What is the beta of a portfolio consisting of 60% security 1 and 40% security 2? What is the standard deviation of a portfolio consisting of 60% security 1 and 40% security 2 if the correlation coefficient between securities is zero? What should be the weight of security 1 in a portfolio consisting of security 1 abd 2 to minimize the portfolios standard...
You own a portfolio consisting of the securities listed above.
The expected return for each security is as shown. What is the
expected return on the portfolio?
Stock W Number of Shares 300 450 100 575 Price per Share $11 19 48 33 Expected Return 8.9% 11.6% 28.4% 12.7% You own a portfolio consisting of the securities listed above. The expected return for each security is as shown. What is the expected return on the portfolio? 10.86 O 14.20 percent...
Problem 6-23 (similar to) Question Help (Portfolio beta and security market line) You own a portfolio consisting of the following stocks: The risk-free rate is 3 percent. Also, the expected return on the market portfolio is 13 percent. a. Calculate the expected return of your portfolio. (Hint: The expected return of a portfolio equals the weighted average of the individual stocks' expected returns, where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta, c. Given...
7. Assume you want to construct a portfolio from the following
two securities. What is the expected return on your portfolio if
you invest $800,000 in Security 1 and $200,000 in Security 2?
Security Expected Return Beta 1 14.0% 1.12 2 10.5% 0.94
A. 13.8% B. 13.6% C. 13.3% D. 12.9% E. 12.3%
7. Assume you want to construct a portfolio from the following two securities. What is the expected return on your portfolio if you invest $800,000 in Security...
. (Portfolio beta and security market line) You own a portfolio consisting of the following stocks The risk-free rate is 4 percent. Also, the expected return on the market portfolio is 9 percent. a. Calculate the expected return of your portfolio (Hint: The expected return of a portfolio equals the weighted average of the individual stocks' expected returns where the weights are the percentage invested in each stock.) b. Calculate the portfolio beta. c. Given the foregoing information, plot the...
Assume that you hold a well-diversified portfolio that has an expected return of 11.0% and a beta of 1.20. You are in the process of buying 1,000 shares of Alpha Corp at $10 a share and adding it to your portfolio. Alpha has an expected return of 22.5% and a beta of 1.20. The total value of your current portfolio is $90,000. What will the expected return and beta on the portfolio be after the purchase of the Alpha stock?...
Security #1 #2 Expected Return Standard Deviation Beta 0.10 0.24 0.20 1.25 0.08 0.80 hat is the expected return of a portfolio consisting of 60% Security # 1 and 40% Security # 2? elect one: a. 8.20% b. 9.20% c. 10.20% O d. 11.20% Oe. None of the above What is the Beta of a portfolio consisting of 60% Security #1 and 40% Security #2? What is the standard deviation of a portfolio consisting of 60 % Security # 1...
Most questions answered within 3 hours.
-
The sandwich maker of the EE-Cole-Eye Sandwich Truck was just
fired (for a reason described below)...
asked 1 hour ago -
Name the following coordination compounds using systematic
nomenclature.
1. [Co(H2O)6]Cl2:
2. [Cr(NH3)6](NO3)3:
3. K4[Fe(CN)6]:
4. Na[Au(CN)4]:...
asked 1 hour ago -
Propose an efficient synthesis of 2-Bromo-5-nitrotoluene from
benzene. Hint: 3 steps. Consider directing effects of substituents....
asked 3 hours ago -
This assignment will explore the impact of corporate decisions
on a local versus a global perspective....
asked 2 hours ago -
Given the function below, F(w,x,y,z)= x’z+w’z’+w’y
a) draw a logic diagram for an implementation which uses...
asked 1 hour ago -
Most political philosophers believe we have a duty to obey laws,
even if the laws in...
asked 2 hours ago -
Which of the following are common negotiation outcome
mistakes?
a. Leave money on the table b....
asked 3 hours ago -
Convert the following quantities:
a) 0.819 atm to torr b) 512 mmHg to bar c) 11.2...
asked 3 hours ago -
C ++ Implement cat command
The purpose of this assignment is to provide practice using the...
asked 3 hours ago -
we
convert sugars into another form of stored potential energy. This
is called?
asked 4 hours ago -
The manufacturers of Oriental Spice Sauce are concerned that the
sodium levels in their product vary...
asked 4 hours ago -
PLEASE DON'T ANSWER IF YOU CAN'T ANSWER ALL OF THE QUESTIONS. I
DESPERATELY NEED HELP
Consider...
asked 4 hours ago