2 10 points eBook Print References You have $35,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with an expected return of 8 percent. If your goal is to create a portfolio with an expected return of 12.3 percent, how much money will you invest in Stock X? Investment in X If your goal is to create a portfolio with an expected return of 12.3 percent, how much money will you invest in Stock Y? Investment in Y

2 10 points eBook Print References You have $35,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with an expected return of 8 percent. If your goal is to create a portfolio with an expected return of 12.3 percent, how much money will you invest in Stock X? Investment in X If your goal is to create a portfolio with an expected return of 12.3 percent, how much money will you invest in Stock Y? Investment in Y

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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9 points Save Answer You are interested in the healthcare industry and create a porftolio consisting of three healthcare stocks. Your holdings of each stock is shown in the table below. Given the expected returns on the three stocks, what is the expected return on your portfolio? Stock A B C a. 19.21% Ob. 16.83% O c. 17.65% Od. 18.58% Number of shares 175 250 300 Price per share $8 $15 $37 Expected return 9% 15% 21%
Problem 11-23 Analyzing a Portfolio You want to create a portfolio equally as risky as the market and you have $2,000,000 to invest. Given this information, fill in the rest of the following table: (Leave no cells blank - be certain to enter "0" wherever required. Do not round intermediate calculations and round your answers to the nearest whole number, e.g., 32.) Asset Stock A Stock B Stock C Risk-free asset $ $ 69 Investment 400,000 320,000 CONJU Beta 1.20 1.50 1.60
Question 4 An investor bought 100 shares of following 3 securities. You are required to calculate overall HPY and HPR and also suggest to investors by using HPR and HPY about the most profitable security. Bought FFC for Rs. 102 and sell for Rs. 115 ENG for Rs. 150 and sell for Rs. 172MEL for Rs. 456 and sold for Rs. 421
Question 4/2 You are an experienced investor in the securities market and you have established an investment portfolio of two blue chips five years ago: Diamond shares with current market value of $235,000 and Platinum shares with current market value of $355,000. Required: Assume that you bought 2000 of Platinum shares in your portfolio for a price of $95 each, the dividend paid for this stock is $3/stock each year. Calculate the total return of this investment after five years?
8. Problem 8.16 (CAPM and Portfolio Return) eBook Problem Walk-Through You have been managing a $5 million portfolio that has beta of 1.15 and a required rate of return of 8.175%. The current risk-free rate is 3%. Assume that you receive another $500,000. If you invest the money in a stock with a beta of 0.85, what will be the required return on your $5.5 million portfolio? Do not round intermediate calculations. Round your answer to two decimal places. %
Q11 You have a portfolio with a beta of 1.35. What will be the new portfolio beta if you keep 85 percent of your money in the old portfolio and 15 percent in a stock with a beta of 0.78? (Round your answer to 2 decimal places.) NEW PORTFOLIO BETA. %
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Q2?
l Globe 1:42 PM 51% Suppose you are considering making an investment. You have a chance to make an investment that will return either $50,000 or $100,000. Your financial advisor estimates that the probability of receiving $50,000 is 50% and the probability of receiving $100,000 is also 50%. You also learn from your financial advisor that shares in this investment are limited and difficult to obtain. Therefore, the less you are willing to invest, the lower the chance that you will be able to participate in the investment. Based on this information, what is the largest amount of money you would be willing to pay to participate in this investment, assuming you had the money? O $70,711 $66,667 $63,246 $60,571 $58,566 $57,083 O $55,978 A missouri.qualtrics.com

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