1.a) Stork A has an expected remrn of 20t,, stock. B has expected returm of st;What is the expected return on a portflio itits Comprised of 67l of stock A and 33y. of Stock B? -/. the market that have s

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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1.a) Stork A has an expected refurn of 201,stock B has an
expected returm of st..What is the expectad return on a
portfelio if its comprised of 671. of stock A and 334 of
stock B? -.
b) Bermard co. has 77 couporn bonds on the market that have Is years
left to maturity. The bends will make annual payments. f the YTM on
these bonds is 91. ahatis the current bond prike Cint)? Assum,
the face valué of the bond is $l000 $
-1.earmed by
investor
im a bond
c) The nomimal rate of return is.
that was purchased for $926. has am ammual coupon of 2/, and was
Sold at the end of the year for $ 1040? Assume the fuce value of
the bond is $1000
an
A M
0.08 ror o.13 M
Transcribed Image Text:1.a) Stork A has an expected refurn of 201,stock B has an expected returm of st..What is the expectad return on a portfelio if its comprised of 671. of stock A and 334 of stock B? -. b) Bermard co. has 77 couporn bonds on the market that have Is years left to maturity. The bends will make annual payments. f the YTM on these bonds is 91. ahatis the current bond prike Cint)? Assum, the face valué of the bond is $l000 $ -1.earmed by investor im a bond c) The nomimal rate of return is. that was purchased for $926. has am ammual coupon of 2/, and was Sold at the end of the year for $ 1040? Assume the fuce value of the bond is $1000 an A M 0.08 ror o.13 M
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