Portfolio Return:  This year so far, McDonalds (MCD) has earned 12% return.  During the same period Coca-Cola (KO) has earned a 8% return and Pepsi (PEP) has earned 15%.  If you have a portfolio made up of 20% MCD, 40% KO and 40% PEP, what is your portfolio return so far this year?

Q: The risk-free rate of return is 5%, the expected rate of return on the market portfolio is 12%, and…

A: Risk free rate = 5%Return on market portfolio = 12%Beta = 1.2Payout ratio = 40%Current earnings =…

Q: Coca Cola - 25.51% Pfizer - 14% CVS - 32.99% Berkshire Hathaway - 29.66%

A: In this question we will be creating portfolio with different weights of each asset to maximize the…

Q: Congratulations! Your portfolio returned 12.9% last year, 2.4% better than the market return of…

A: The sharpe's ,measure of your portfolio is 0.529

Q: Kinkead Inc. forecasts that its free cash flow in the coming year, i.e., at t = 1, will be −$10…

A: Value of Firm = FCF1/(1+WACC)^1 +FCF2/(1+WACC)^2 +Terminal Flow/(1+WACC)^2 FCF1 = -$10 million FCF2…

Q: The table below gives the historic return over the past five months for the market portfolio and two…

A: Beta (β) quantifies a stock's volatility concerning the overall market. A beta value exceeding 1…

Q: Portfolio managers are frequently paid a proportion of the funds under management. Suppose you…

A: Variables in the question:a)Value of portfolio=$105 millionDividend yield=5.5%Annual fee of…

Q: Portfolio Return Year-to-date, Company O had earned a -7.6 percent return. During the same time…

A: Portfolio Return: Portfolio return is the weighted average return of securities which constitute the…

Q: The risk-free rate is currently 8.4%. Use the data in the accompanying table for the Fio family's…

A: The Sharpe ratio refers to the measure of the risk-adjusted return to ascertain the compensation…

Q: Following is forecast for economic situation and Rachel’s portfolio returns next year, calculate the…

A: Probability Return on stock Mild recession 0.35 -5.00% Growth 0.45 15.00% Strong growth 0.2…

Q: Consider a portfolio with expected annual return of 21.1% and volatility of 38%. Determine an…

A: Required:Compute the analytical Value at Risk for one month.

Q: Suppose you invest 40% of your fund in stock A and the other 60% in stock B. If stock A and B are…

A: In the given case, we have provided the probability of each state of economy and the return of each…

Q: What is the final portfolio value if you invested $250,000 into a portfolio six years ago, and which…

A: Amount invested = $250,000Year 1 return = 4.95%Year 2 return = 9.05%Year 3 return = -2.25%Year 4…

Q: Fremont Enterprises has an expected return of 13% and Laurelhurst News has an expected return of…

A: A portfolio is made up of a minimum of two stocks or two financial assets or securities. For…

Q: At the beginning of the month, you owned $9,000 of General Dynamics, $6,000 of Starbucks, and $5,000…

A: Portfolio return means the weighted average profitability of the portfolio. In a portfolio, there…

Q: Homework 6 Year Return (ri) 2009 12% 2010 16% 2011 28% 2012 -22% 2013 11% 1) Given the following…

A: In this question we need to calculate the expected return and standard deviation.

Q: The returns to a portfolio over the last 5 years are: Year 1 2 3 4 5 Portfolio Returns 6% 9% 3% 12%…

A: The Sharpe Ratio is a measure that helps investors understand the return of an investment compared…

Q: Fremont Enterprises has an expected return of 16% and Laurelhurst News has an expected return of…

A: The weighted return of different securities in the portfolio is termed as expected portfolio return.…

Q: 4. Consider a position consisting of a $50,000 investment in onions and a $80,000 investment in…

A: Portfolio risk:Portfolio risk refers to the potential for financial loss within a collection of…

Q: R and D budget and Capital expenditure budget are examples of ____________. a. Short-term budget b.…

A: R and D expenditure is the research and development expenditure which is directly related to the…

Q: If you invest 40% of your investment in GE with an expected rate of return of 10% and the remainder…

A: A combination of the different types of funds and securities for the investment is term as the…

Q: Year-to-date, Yum Brands had earned a 4.90 percent return. During the same time period, Raytheon…

A: portfolio return = sum of (weight of company * return of company)

Q: Year to date, Yum Brands had earned a 3.80 percent return. During the same time period, Raytheon…

A: Given:   Weight Return Yum brands 0.30 3.80% Raytheon 0.30 4.26% Coca cola 0.40 -0.46%

Q: Consider historical data showing that the average annual rate of return on the S&P 500 portfolio…

A: Treasury bill return=3%S&P 500 portfolio return = 3%+8% = 11%Standard deviation = 35%

Q: Consider historical data showing that the average annual rate of return on the S&P 500 portfolio…

A: Here,Risk Free Rate is 5%Expected Return of S&P Index is 8% more than T Bill Rate (Risk Free…

Q: 5 years of data, you estimate the arithmetic average return for a certain stock to be 5.5% and the…

A: In financial forecasting Blue formula is used to calculate future possible return based on the…

Q: Suppose we want to determine the expected return and standard deviation for a portfolio of assets A…

A: The question is based on calculation of risk and return for portfolio of two different asset class.…

Q: Your portfolio returned 11.6% last year, with a beta equal to 1.6. The market return was 9.0%, and…

A: Jensen measure = Realized return - ( RF + beta * ( rm - rf ) Realized return portfolio =11.6% Beta =…

Q: Assuming the below annual rates of return: Annual Rates of Return: Wamart - 12.36% Coca Cola -…

A: The portfolio return is the overall performance of the portfolio over a certain period of time,…

Q: Year-to-date, Oracle had earned a -1.44 percent return. During the same time period, Valero Energy…

A: Portfolio return  = ( Weight 1 * Return 1) + ( weight 2 * Return 2) +...(weight n * Return n)

Q: old the positions in the following table. If you expect the market to earn 14 percent and the…

A: Beta is a measure of systematic risk.Beta of a portfolio is the weighted average of betas of…

Q: Consider historical data showing that the average annual rate of return on the S&P 500 portfolio…

A: T bill rate: 5%Standard deviation of market index: 26%Return of market index: 8%+T bill rate

Q: You have the following data on a portfolio. You have decided to invest 11% of your money in Asset A…

A: Average return of stock A = (17 x 13%) +( 20 x 87%) = 19.61Average return of stock B = (5 x 13%) +…

Q: Over the past 4 years an investment returned 22%, -5%, -20%, and 9%. What is the standard deviation…

A: Standard Deviation is the deviation of statistical data from its mean. It is the square root of…

Q: None

A: Step 1:We have to calculate the expected return of the portfolio.Calculations are shown below:S.…

Q: at is the expected return of your portfolic

A: Expected return of the portfolio equals the summation of the individual expected returns multiplied…

Q: At the beginning of the month, you owned $7,000 of News Corporation, $5,000 of First Data, and…

A: Portfolio return = Monthly return of News Corp x Weight of News Corp + Monthly return of First Data…

Q: Suppose that you invested S400, 000 in U.S Rubber, $600, 000 in Sony, and S 1,000,000 in JVC. Sony…

A: Expected return is a pivotal financial concept representing the anticipated average gain or loss on…

Q: Consider historical data showing that the average annual rate of return on the S&P 500 portfolio…

A: Standard deviation is the measure of risk in the stock and standard deviation is measured as square…

Q: You are a consultant to a firm evaluating an expansion of its current business. The annual cash flow…

A: Answer) Calculation of Net present Value Net present value = Present value cash inflows – Initial…

Q: If you have a portfolio made up of 30 percent Yum Brands, 30 percent Raytheon, and 40 percent…

A: To determine the portfolio return, the formula for the weighted average cost of capital (WACC) can…

Q: Your current portfolio is 100% invested in the market. You are considering investing some of your…

A: The Sharpe Ratio is a measure of risk-adjusted return. It essentially measures the excess return per…

Q: Fremont Enterprises has an expected return of 14% and Laurelhurst News has an expected return of…

A:

Fringe Benefit Tax

Fringe benefits are in addition to the compensation that companies give to their employees. It is an additional benefit above the stated salary. It helps to keep the employees of the firm motivated as sometimes the only salary is not enough to retain the quality employees of the firm. There are different types of fringe benefits. Fringe benefits are given in both private as well as public enterprises.