15. You have $10,000 to invest. You invested $4000 in Firm A and the remaining amount in Firm B. The expected return on these firms is 10% and 20%, respectively. The expected return on your portfolio is: (a) 18.25% (b) 13.00% (c) 17.00% (d) 16.00%

15. You have $10,000 to invest. You invested $4000 in Firm A and the remaining amount in Firm B. The expected return on these firms is 10% and 20%, respectively. The expected return on your portfolio is: (a) 18.25% (b) 13.00% (c) 17.00% (d) 16.00%

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

Section: Chapter Questions

Problem 1PS

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Similar questions

Suppose you invest 70% of your fund in stock A and the other 30% in stock B. If stock A and B are expected to have the following returns next year, then what are the standard deviations for Stock A, Stock B and the portfolio returns respectively? Probability State of Economy Recession Boom 9.60%; 11.6% 12.60%; 14.2% 2.60%; 14.05% 9.60%; 7.80% .2 .8 Stock A -9% 18% Stock B 1% 3%
Your investment over one year had a realized return of 9% and a dividend yield of 6%. If the sale price was $45 per share, what was the cost of the investment? Question 7 options: $45.00 $46.35 $43.69 $41.28 $44.21
Suppose you invest in 130 shares of Harley-Davidson at $40 per share and 230 shares of Yahoo at $25 per share. If the price of Harley-Davidson increases to $50 and the price of Yahoo decreases to $20 per share, what is the return. on your portfolio? A. B. 10.50% 12.25% O C. 1.37% OD. -5.20%
Assume that the CAPM is true, Rf = 5%, Rm= 15% σm = 0.1. An investor with $10,000 to invest builds a portfolio, Q, of T-bills and the market portfolio. This means that: a) it would be possible for the investor to obtain a return of 17% on portfolio Q b) if portfolio Q were composed of short-selling $2,000 in T-bills and the remainder is the market portfolio, then Pqm = 1, βq = 1.2 and σq = 0.12 c) to obtain a return of 17% from portfolio Q the investor would need to invest $12,000 in the market portfolio d) all of the above are true e) only a) and b) above are true. Pls show procedure, thanks
ces A manager believes his firm will earn a return of 23.80 percent next year. His firm has a beta of 1.69, the expected return on the market is 16.30 percent, and the risk-free rate is 6.30 percent. Compute the return the firm should earn given its level of risk. (Round your answer to 2 decimal places.) Required return Determine whether the manager is saying the firm is undervalued or overvalued.. undervalued % overvalued
23. What return should be expected from investing in the market portfolio that is expected to yield 18% if the investment includes all of the investor's funds plus 30% additional funds borrowed at the risk-free rate of 6%? A. 18.6% B. 19.6% C. 21.6% D. 24.0%
8
ou invest $3,000 in a complete portfolio. The complete portfolio is composed of a risky asset with an expected rate of return of 15% and a standard deviation of 20% and a Treasury bill with a rate of return of 10%. __________ of your complete portfolio should be invested in the risky portfolio if you want your complete portfolio to have a standard deviation of 8%.
An investor invests 20% of his wealth in a risky asset with an expected rate of return of 15% and a variance of 400%² and % respectively. 80% in a treasury bill that pays 6%. Her portfolio's risk is O 3% 0 0 0 0 Ⓒ4% 6% - 5%
20 You have the following rates of return for a risky portfolio for several recent years: 2016 = 35.23% 2017 = 18.67% 2018 = -9.87% 2019 = 23.45% If you invested $1,000 at the beginning of 2013, your investment at the end of 2016 would be worth $2,176.60 $1,247.87 $1,785.56 $1,645.53
Suppose you invest in 150 shares of Harley - Davidson (HOG) at $40 per share and 250 shares of Yahoo (YHOO) at $25 per share. If the price of Harley Davidson increases to $50 and the price of Yahoo decreases to $ 20 per share, what is the return on your portfolio? A .2.04% B. 10.50% C. - 5.20% D. 12.25%

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