Stock Artemis Inc. Babish & Co. Cornell Industries Danforth Motors What is the expected return on Andre's stock portfolio? 11.10% 14.99% 8.32% Percentage of Portfolio Expected Return Standard Deviation 20% 30% 35% 15% 16.65% 8.00% 14.00% 13.00% 5.00% 27.00% 31.00% 34.00% 36.00% Suppose each stock in Andre's portfolio has a correlation coefficient of 0.4 (p 0.4) with each of the other stocks. If the weighted average of the risk in the partially diversified four-stock portfolio is 32%, the portfolio's of the individual securities (as measured by their standard deviations) included standard deviation (₂) most likely is 32%

Q: A portfolio is invested 15 percent in Stock G, 55 percent in Stock J, and 30 percent in Stock K. The…

A: Portfolio's expected return is the weighted sum of return of each stock.

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

A: The Capital Asset Pricing Model is a model that describes the relationship between the expected…

Q: You own a portfolio that has $2,000 invested in Stock A and $8,000 invested in Stock B. If the…

A: Given: Portfolio consists of Stock A = $2000 Stock B = $8000 The expected return on the stock is 20%…

Q: You have a portfolio with the following: Stock W X Y Z Number of Shares 475 840 475 650 Expected…

A: In the given case, we have provided the each stock number of shares , price and expected return .…

Q: Suppose Wesley Publishing​'s stock has a volatility of 60%​, while Addison Printing​'s stock has a…

A: Wesley Publishing stock's volatility = 60%Addison printing's stock = 20%Correlation between these…

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: You own a portfolio that has $1,700 invested in Stock A and $3,050 invested in Stock B. If the…

A: Expected return= Probability / Weight * Return= Return A * investment in A / Total Investment +…

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 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: You have a portfolio with the following:   Stock Number of Shares Price Expected Return W 1,050…

A: First, we should compute the total Portfolio value and total return received. Then we should assess…

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: 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: Mike Flannery holds the following portfolio: What is the portfolio's beta? Do not round your…

A: Beta is the measurement of risk. It shown the risk which is involved in earning the return from the…

Q: You own a portfolio that is invested 32% in share A, 43% in share B and the remainder in share C.…

A: Expected return on share A = 11.5% Expected return on share B = 15.2% Expected return on share C =…

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: What is the standard deviation of the returns on a portfolio that is invested in stocks A, B, and C?…

A: Hi there. Thank you for the question. Multiple questions are posted. As per company guidelines…

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

A: The question is related to Expected Return of Portfolio. The expected return of Portfolio is…

Q: You decide to form a portfolio of the following amounts invested in the following stocks. What is…

A: The profit or loss that an investor anticipates on an investment with known historical rates of…

Q: You own a portfolio that has $1,700 invested in Stock A and $3,300 invested in Stock B If the…

A: Investment in stock A = $1,700Investment in stock B = $3,300Total Investment = $1,700 + $3,300 =…

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: 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: 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: Based on the table below, what is the expected return of the stock? Probability 0.20 0.10 0.40 0.20…

A: The expected return of the stock refers to the profit that the stock provides on average to the…

Q: 5. Your stock portfolio consists of the following investments: Company A B C Investment A. 1.73 B.…

A: Portfolio risk can be calculated as the measure of standard deviation of the return or the square…

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: what is the expected return of the three stock portfolio described below? common stock market…

A: Calculate the stock portfolio as follows:

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

A: The expected return on a portfolio calculates the expected value of a portfolio. The probability…

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: 18. What is the standard deviation of the returns on a portfolio that is invested in stocks A, B,…

A: Portfolio contains different stocks/assets. Investors try to invest in a portfolio to reduce the…

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: You have a portfolio with the following:   Stock Number of Shares Price Expected Return W 1,000…

A: Portfolio is a bundle of different investments. Investor invest the money in different investment to…

Q: You have been given this probability distribution for the holding-period return for KMP stock: HPR…

A: economy probability HPR boom 0.3 18% normal 0.5 12% recession 0.2 -5%

Q: You decide to form a portfolio of the following amounts invested in the following stocks. What is…

A: Calculating Total Investment and Weights of Each Stock:The first step in determining the expected…

Q: Intro The table below shows the expected rates of return for three stocks and their weight in some…

A: Expected Return of Portfolio is calculated by multiplying the Expected return of each stock by their…

Q: 18. What is the standard deviation of the returns on a portfolio that is invested in stocks A, B, C?…

A: Standard deviation measures the level of distribution of data from the average. Higher standard…

Q: Donald Gilmore has $100,000 invested in a 2-stock portfolio. $80,000 is invested in Stock X and the…

A: Total Investment = $100,000 Stock X value = $80,000 Beta = bx = 1.50 Stock Y value = total…

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: Investor Z has $100,000 invested in a 2-stock portfolio. $33,000 is invested in Stock X, and the…

A: The question is based on the concept of Portfolio management. Beta is considered as a responsiveness…

Risk and return

Before understanding the concept of Risk and Return in Financial Management, understanding the two-concept Risk and return individually is necessary. 

Capital Asset Pricing Model

Capital asset pricing model, also known as CAPM, shows the relationship between the expected return of the investment and the market at risk. This concept is basically used particularly in the case of stocks or shares. It is also used across finance for pricing assets that have higher risk identity and for evaluating the expected returns for the assets given the risk of those assets and also the cost of capital.