### IntroYou've assembled the following portfolio:| Stock | Expected return | Portfolio weight ||-------|------------------|------------------|| 1 | 9.3% | 30% || 2 | 11.5% | || 3 | 16.9% | |*Note: The Portfolio weight for stock 2 and stock 3 are unassigned.*### Part 1**Question:** What is the weight for stock 3 if you want to achieve an expected portfolio return of 15%?**Answer Input Box:** *Please input the weight in decimals (e.g., 0.45 for 45%)*[Submit Button]

Expected rate of return is calculated by multiplying the assets weight with expected return.…

Answered: Intro You've assembled the following…

Business

Finance

Intro You've assembled the following portfolio: Stock Expected return Portfolio weight 1 9.3% 30% 2 11.5%

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

See similar textbooks

Related questions

Q: Beta for Stock Y given the Expected Return of Stock Y is 20.4% The expected return on the Market…

A: The given problem can be solved using Capital asset pricing model.

Q: stock expected return beta a 9.01% 1.7 b 7.06% 0.0 c 5.04% 0.67 d 8.74% 0.87 e 11.5%…

A: Risk free rate = 7% Market risk premium = 2%

Q: distribution for stocksity Youthe following p 2012 State Probability Return on Stock A Return on…

A: The Expected Portfolio or the overall rate of return of the Portfolio is the total return which is…

Q: Question 1 Consider the three stocks in the following table. P, represents price at time t, and Q,…

A: The rate of return refers to the minimum return earned by the investor while investing in the stocks…

Q: You have a portfolio with the following: Stock Number of Shares Price Expected Return W 1,150 $ 63…

A: Stock Number of shares Share price W $ 1,150.00 $ 63.00 X $ 1,050.00 $ 40.00…

Q: You own the portfolio below, what is your expected return? % of Portfolio Expected Return 15% 40%…

A: A portfolio is made up of at least two stocks. It can have any number of stocks as long as the…

Q: What is the expected return of your portfolio? (Do not round intermediate calculations and enter…

A: Expected return of the portfolio = (Weight of W*Expected return of W)+(Weight of X*Expected return…

Q: What is the beta of the following portfolio? Stock A B C D Beta 1.2 0.7 -0.2 1.4 Round to the second…

A: Stock beta Investment A1.2150000B0.7180000C-0.2130000D1.4140000

Q: What is the expected return on this portfolio? Stock Expected Return # of Shares Price/Share A 12%…

A: Total portfolio value =(200*18.60 +400*12.85 +300*43.90) =22030Weightage of stock A = (200*18.60)…

Q: If the required rate of return on preferred stock is 15% and that preferred stock sells for OMR 5…

A: The formula used is shown:

Q: léstions 1-24) 1. Determining Portfolio Weights What are the portfolio weights for a portfolio that…

A: A group of financial assets such as stocks, bonds, commodities, cash, and cash equivalents, as well…

Q: What is the expected return of the following portfolio? Amount Stock Invested A $42,240 B $26,201 C…

A: Expected return of a portfolio is the weighted return. Weight for each Stock is determined and then…

Q: Assume a portfolio is made up of three stocks: Expected Return Investment Beta Stock A 18% $150,000…

A: First weights of each stock in the investment is calculated as investment in stock divided by total…

Q: You have a 2-stock portfolio with an expected return of 12 percent. Stock A has weight of 8 percent.…

A: The Expected portfolio or overall rate of return of the portfolio is the total return that is…

Q: Review the following market information: Current Stock Market Return 11.25%…

A: The required return is the minimum return an investor expects from a stock. It is calculated by the…

Q: Price Forward Dividend 1T Target Est $75.20 $0.80 $87.76 Given the information in the table, t he…

A: Given: Forward dividend = $0.80 Forward price = $87.76 Required return = 14.80%

Q: Returns on stocks X and Y are listed below: Period Stock X Stock Y 1 9% -2% 2 3 4 6% 1% 8% 9% 5% 5 6…

A: The standard deviation of a portfolio, often referred to as the portfolio standard deviation, is a…

Q: What is the expected return for the following portfolio? (State your answer in percent with two…

A: Expected return of portfolio comprising of multiple different securities is computed as…

Q: Intro You've assembled the following portfolio: Stock Exp. return Investment 1 6.9% 2 14.7% 3 16.3%…

A: As per the given information: StockExp. returnInvestment16.9%$5,000214.7%$12,000316.3%$7,000

Q: Calculate the beta

A: A portfolio is the combination of stocks or shares in such a way that return derived is maximum with…

Q: Question 4 Analyzing the stock market produces the following information about the returns of two…

A: Portfolio Standard Deviation: Portfolio standard deviation represents the volatility of the…

Q: You have a portfolio with the following: Stock Number of Shares. 1,025 925 675 900 Price. $ 58…

A: Expected return= Sum of (Value of Shares * expected return) / Sum of Value of SharesValue of Shares=…

Q: Beta 0.53 Risk-free 0.7% MRP 5.55% Rate Given the data in the table, what is the stock's risk…

A: Risk free rate = 0.7% Market return = 5.55% Beta = 0.53

Q: What is the expected return on this portfolio? # of Expected Return Stock Price/Share Shares A 11%…

A: Given information: Expected return on stocks A, B and C are 11%, 6% and 17% Number of shares of A, B…

Q: Use the following table of information: Stock X Stock Y Expected Return 14% 18% Standard Deviation…

A: Expected return is a way of calculating profit or loss anticipated by an investor on his investment…

Q: The beta of four stocks-P, Q, R, and S-are respectively 0.6, 0.85, 1.2, and 1.35. Weight in P Weight…

A: Portfolio 1 Beta = (Stock P weight * Stock P Beta) + (Stock Q weight * Stock Q Beta) + (Stock R…

Q: Question 15 You own a portfolio that has $3,026 invested in Stock A and $4,300 invested in Stock B.…

A: The objective of the question is to calculate the expected return on the portfolio which is a…

Q: A portfolio consists of $15,400 in Stock M and $23,900 invested in Stock N. The expected return on…

A: Given: Investment in stock M = $15,400 Investment in stock N = $23,900 Stock M return = 9.20% Stock…

Q: Stock 1 Stock 2 14% pected return dard deviation 10% 20% 40%

A: In this we have to calculate weighted average return and standard deviation.

Q: You own a portfolio consisting of the following stocks. Calculate the expected return of the…

A: Portfolio beta is a measure of the systematic risk of a portfolio of investments, which reflects the…

Q: i need answer typing clear urjent no chatgpt i will give upvote A portfolio is invested 18 percent…

A: StockWeightReturnG18.00%7.00%J58.00%13.00%K24.00%17.00%

Q: Expected Return on the market HPR Beta Risk-free rate Stock ABC 15.68% 1.2 1% 6.68% What is the…

A: Alpha is the abnormal return which the investors get and is above the equilibrium or expected return…

Q: sisting of the föllowir STOCK OR SECURITY 1. F 2. 3 4. The risk-free rate is 4 pe a. Calculate the…

A: Note : As per our guidelines, we can only answer three subparts at once. Please post other subparts…

Q: The return of stock B is __% The volatility of stock A is __% The volatility of stock B is __%

A: Thank you for posting questions. Since you have posted multiple questions, as per the guideline I am…

Q: 3.Anytime Coffee has 160,000 shares of stock outstanding, sales of $1.94 million, net income of…

A: Ans:

Q: You have a portfolio with the following: Stock Number of Shares Price Expected Return W…

A: Information Stock Number of shares Price Expected return W 875 52 14% X 775 29 18% Y 525 65…

Q: E(rs) 10 eight in stocks WS -0.1 0.0 0.1 0.2 0.3 0.4 0.6 0.8 1.0 1.1 E(1 B) 5 Portfolio expected…

A: First, I'm going to list the formula used and then solve them in excel. Portfolio expected return =…

Q: Consider the following information on two stocks: P(State) Stock A Stock B Boom 20% 30% 20% Normal…

A: Part 2: Explanation:Step 1: Calculate the weight of A in the portfolio. - Weight of A = $35,000 /…

Q: You post a portfolio. What's the beta of the portfolio? STOCK AMOUNT BETA EXPECTED RETURN Mac…

A: stockinvestmentweightbetaexpected…

Q: Covariance with Mean Return Stock AOL Microsoft Intel AOL .002 .001 15% Microsoft .001 .002 .001 12…

A: Tangency Portfolio - The Sharpe ratio-maximizing tangency portfolio is one that optimizes the Sharpe…

Q: calculate portfolio risk and return based on following combination: 70% invested in Stock A, 30%…

A: Weight of stocks in a portfolio show the proportion in which stocks are there in the portfolio.…

Q: You have a portfolio with the following: Stock Number of Shares Price Expected Return W 725…

A: Stock Number of share Price Investment Investment Ratio I II III = I*II IV=III/96250 W 725 46…

Q: An investor's portfolio consists of the following stocks: B. C. Required: A. Stock NCB BNS JBG GRACE…

A: Stock % of portfolio BetaExpected return…

Q: You have a portfolio with the following: Stock Number of Shares W NAXM 1,075 975 Y Z 725 950 Price $…

Q: You decide to invest in a portfolio consisting of 17 percent Stock X. 50 percent Stock Y. a on the…

A: The standard deviation of a portfolio is the total risk of the portfolio arising out of expected…

Q: Review the following market information: Current Stock Market Return 11.25%…

A: As per CAPM, Required Return = Risk free Rate + Beta * (Market return - risk free rate) where, Risk…

Q: You have a portfolio which consists of 75% of stock 1 (o^2 = 0.16) and 25% of stock 2 (o^2 = 0.09).…

A: Return on the stock is based on the risk free rate, market return and the risk associated with the…

Q: 1. Determine the volatility for the following three stock portfolio

A: Standard deviation is measured to measure the volatility of the stocks in the portfolio. Where,…

Question

### Intro

You've assembled the following portfolio:

| Stock | Expected return | Portfolio weight |
|-------|------------------|------------------|
| 1 | 9.3% | 30% |
| 2 | 11.5% | |
| 3 | 16.9% | |

*Note: The Portfolio weight for stock 2 and stock 3 are unassigned.*

### Part 1

**Question:**
What is the weight for stock 3 if you want to achieve an expected portfolio return of 15%?

**Answer Input Box:**
*Please input the weight in decimals (e.g., 0.45 for 45%)*

[Submit Button]

Expert Solution

This question has been solved!

Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.

SEE SOLUTION Check out a sample Q&A here

Step 1 Analysis

VIEW

Step 2 Calculation of expected return of portfolio

VIEW

Step by step

Solved in 2 steps

SEE SOLUTION Check out a sample Q&A here

Knowledge Booster

Learn more about

Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.

Similar questions

Expected return of a stock with probability of occurrence of 0.4 in the first case with return of 16% and with probability of occurrence of 0.6 in the second case with a return of 12 % is a. 13.6% b. 11 % c. 12 % d. 9.3 %
You own the portfolio below, what is your expected return? % of Portfolio Expected Return 50% 15% 35% Stock PCBM NAV MB O 10.8% O 13.5% O 2.6% O 8.3% 19% -10% 8%
ff2
What is the expected return of the following portfolio? Stock Price Per Share Number of Shares Security Expected Return A $ 16 1509.01 B $ 13 175 10.53
Assume a two-stock portfolio with $50,000 invested in Stock A and $30,000 invested in Stock B. The expected return of Stock A is 12% and the expected return of Stock B is -2%. What's the expected portfolio return? Group of answer choices 7.50% 6.75% 10.0% 6.0%
4 Skipped Use the following data for Questions 3-5: Value 12500 17500 20000 Stock A B C Exp. Return 8.5% 9.2% 10.6% Beta 0.8 1.2 1.4 Question 4: What is the portfolio's Beta? ENTER YOUR ANSWER ROUNDED TO 2 DECIMAL PLACES
Return rate
Give typing answer with explanation and conclusion
Q2 - Returns on stocks X and Y are listed below: Period 1 2 3 4 5 6 7Stock X 4% -2% 5% -1% 10% 7% 12%Stock Y -3% 7% 4% 2% 2% 8% -3% Consider a portfolio of 10% stock X and 90% stock Y. What is the mean of portfolio returns? Please specify your answer in decimal terms and round your answer to the nearest thousandth (e.g., enter 12.3 percent as 0.123).
Given the following information on a investment portfolio: Stock Name Expected returns $invested in stock Standard deviation of returntesla 15.5% 3750 10.3%microsoft 9.8% 5000 5.6%pfizer 13.8% 1250 12% Which stock should have the most systematic risk?
Tiempo restante U:28:23 What is the beta of a portfolio that has $18,400 in Stock M, $6,320 in Stock N, $32,900 in Stock O and $11,850 in Stock P. Their Betas are .97, 1.04, 1.23, and .88, respectivley? O a. 1.04 O b. 1.11 О с. 1.08 O d. 1.15 O e. .99
Company A is an AAA-rated firm desiring to issue five-year FRNs. It finds that it can issue FRNs at six-month LIBOR + .215 percent or at three-month LIBOR + .215 percent. Given its asset structure, three-month LIBOR is the preferred index. Company B is an A-rated firm that also desires to issue five-year FRNs. It finds it can issue at six-month LIBOR + 1.0 percent or at three-month LIBOR + .715 percent. Given its asset structure, six-month LIBOR is the preferred index. Assume a notional principal of $15,000,000. Determine the quality spread differential (QSD). (Do not round intermediate calculations. Enter your answer as a percent rounded to 3 decimal places.)

Recommended textbooks for you

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

Essentials Of Investments

Finance

ISBN:

9781260013924

Author:

Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:

Mcgraw-hill Education,

FUNDAMENTALS OF CORPORATE FINANCE

Finance

ISBN:

9781260013962

Author:

BREALEY

Publisher:

RENT MCG

Financial Management: Theory & Practice

Finance

ISBN:

9781337909730

Author:

Brigham

Publisher:

Cengage

Foundations Of Finance

Finance

ISBN:

9780134897264

Author:

KEOWN, Arthur J., Martin, John D., PETTY, J. William

Publisher:

Pearson,

Fundamentals of Financial Management (MindTap Cou…

Finance

ISBN:

9781337395250

Author:

Eugene F. Brigham, Joel F. Houston

Publisher:

Cengage Learning

Corporate Finance (The Mcgraw-hill/Irwin Series i…

Finance

ISBN:

9780077861759

Author:

Stephen A. Ross Franco Modigliani Professor of Financial Economics Professor, Randolph W Westerfield Robert R. Dockson Deans Chair in Bus. Admin., Jeffrey Jaffe, Bradford D Jordan Professor

Publisher:

McGraw-Hill Education

SEE MORE TEXTBOOKS