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: What is the portfolio expected return

A: Anticipated return from an investment expected by the investor is known as expected return. The…

Q: The arithmetic average return on your portfolio for the past 5 years is 9.3 percent. You earned -7.4…

A: The rate of return refers to the measure of the performance of the investment. It is calculated by…

Q: At a yield rate of j = 4%, an asset portfolio has a Macaulay duration of 8.36 years, with a…

A: To calculate percentage change in the value of portfolio we use the formula:- Percentage change in…

Q: A portfolio consists of assets with the following expected returns: Technology Stocks 20%…

A: 1] Stock expected return below: Technology Stocks 20% Pharmaceutical Stocks 15% Utility Stocks 10%…

Q: $20,500 is invested in this portfolio which consists of stocks Netflix (NFLX) and Amazon (AMZN).…

A: To Find:  Portfolio expected return Standard deviation

Q: Consider a portfolio with $5,000, invested 65% in Black Gold Inc., an energy comp 35% in Bits and…

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

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: Consider an economy with two types of firms, S and I. S firms always move together, but I firms move…

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

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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: As the Head of Investment for your company you are expected to compute the 10% value-at-risk for…

A: We have a portfolio of two asset classes. We have to find the expected return, standard deviation…

Q: 15. You have $10,000 to invest. You invested $4000 in Firm A and the remaining amount in Firm B. The…

A: The objective of this question is to calculate the expected return on the investment portfolio,…

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: A portfolio earned 16% in the past year. The target beta is 1.0 and the actual beta was 1.20. The S.…

A: Expected portfolio return = 16%Risk-free rate= 2%Actual beta= 1.2Target beta=Market return=…

Q: ver the past 3 years, your stock fund earned returns of 10%, -8%, and 12

A: Solution:- Average annual compound rate means the average of the returns earned in the various…

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: At the beginning of the month, you owned $7,100 of Company G, $9,700 of Company S, and $4,400 of…

A: Calculation of Portfolio Return:The portfolio return is 2.22%.Excel Spreadsheet:

Q: An investment has had returns of 15 percent, 10 percent, -16 percent, and 27 percent over the last…

A: Year Return 1 15% 2 10% 3 -16% 4 27%

Q: Portfolio XYZ had a return last year of 14%. The risk-free rate of return was 3%. The market return…

A: Portfolio Alpha is that amount which is the difference between the actual return and CAPM return…

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: Q5. You are assigned a task to compare portfolios W, X, Y and Z. During the most recent 4-year…

A: Since you have posted a question with multiple sub-parts, we will solve the first three subparts for…

Q: What is your approximate real rate of return, if your portfolio generated nominal return of 9.87%…

A: Real rate of return means annual percentage return on investments and it is adjusted for inflation…

Q: a. the expected return and b. the volatility(standard deviation) of a portfolio that consists of a…

A: First we need to determine the weights of Johnson and Walgreens in the portfolio. This can be…

Q: Consider an investor had a portfolio of $10 million bonds in a long position suppose the confidence…

A: Value at Risk (VAR) is used to quantify the risk which emerges due to movement in prices or returns…

Q: The average returns on a portfolio of stocks are normally distributed. The average annual return is…

A: Mean return=8.25%Standard deviation=4.5%Given return=5.25%Calculate Z score and probability

Q: P8-3 Portfolio Return At the beginning of the month, you owned $12,000 of Ford Motor, $18,000 of…

A: The effective return is the actual return that the company gets when it takes part in investments.

Q: Consider the following information. Your portfolio is invested 40% percent each in Apple and 60%…

A: The expected return is the anticipated number of returns that a portfolio may generate. Variance is…

Q: $20,500 is invested in this portfolio which consists of stocks Netflix (NFLX) and Amazon (AMZN).…

A: To Find: Portfolio Expected return Portfolio Standard Deviation

Q: Jennifer's portfolio experiences the following returns over a three-year period: 12%, -5%, 8%.  What…

A: The geometric average return is a way of calculating the average rate of return on an investment…

Q: If the volatility of Tesla is 2.74% per day, it will correspond to _____ per month.

A: Answer: B. 12.56%

Q: You are given the following information concerning Cabinet Co., NewClear Co and the market.…

A: The question is based on the concept of portfolio return and expected return from a  stock in…

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

A: The utility of a portfolio refers to the measure of satisfaction that the investor derives from…

Q: The yield on 3-month Treasury bill is 3.5%, the investor's risk aversion is 2.5, and standard…

A: To estimate the expected rate of return of the market, we can use the Capital Asset Pricing Model…

Q: You have a portfolio of three assets at the beginning of the year: Asset 1 is 30% of the portfolio,…

A: The return of portfolio for the year is

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: None

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

Q: None

A: Given:Expected return on T-bills = 5% = 0.05Expected return on the S&P 500 = 13% = 0.13 (8% more…

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: 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: 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…

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.