What is the expected return on this portfolio? Stock Expected Return # of Shares Price/Share A 12% 200 $18.60 B -5% 400 $12.85 C 13% 300 $43.90   Group of answer choices 13.97% 13.42% 7.83% 11.56% 8.63%

Q: Stock Info Shares Outstanding Stock Price beta risk free rate Market Return Book Value Amount Table…

A: WACC is the cost of capital and is the weighted cost of equity and weighted cost of debt and is the…

Q: What is the expected return of the three-stock portfolio described below?   Common Stock Market…

A: Expected return refers to the investor’s predicted amount of profit and loss on an investment. It is…

Q: Stock Value Portfolio share Stock beta Apple Inc.  $40,000 0.30 1.36 Tesla Motors $25,000…

A: Beta of portfolio reflects the weighted average beta of all the stocks combined in the portfolio.…

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: Current Price $100 Expected Price in 1 year Expected Dividend T-year T Bond yield $107.98 Beta 2.0…

A: Holding period return is referred to the total return received from holding an asset or portfolio of…

Q: You invested in a portfolio comprising three shares - A, B and C. The following table shows the…

A: Beta coefficient shows the systematic risk of the assets. The beta factor shows the systematic risk…

Q: You own the following portfolio of stocks. What is the portfolio weight of Stock C? Number of Price…

A: In this question, we are required to determine the portfolio weight of Stock C.

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: Stock X Rate of Return (r) Probability (p) Optimistic 14 % 26 % or 0.26 The Economic Most Likely…

A: Given Data:   Rate of return(r) Probability(p) 14% 0.26 11% 0.70 -8% 0.04

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: What is the portfolio beta?

A: To calculate the portfolio beta we will multiply weight of each stock with beta of each stock.

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: Price Forward Dividend 1T Target Est $86.36 $2.08 $105.28 Given the information in the table, if the…

A: Calculation of the current price of the stock based on the estimated or actual dividend payments is…

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: 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: What is the portfolio beta?

A: Portfolio beta = (W1*B1) + (W2*B2) + (W3*B3) Where W1 = Weight of stock 1 W2 = Weight of stock 2 W3…

Q: Fill in the blank by selecting from the dropdown. Stock Amount Portfolio weight Portfolio Stock K…

A:

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: Given Investment E(R) σ Stock A $15,000 10% 10% Stock B $5,000 5% 25% Total $20,000 and Corr(AB) =…

A: The formula for the covariance of two random variables X and Y in relation to their correlation and…

Q: Use the information below to answer the question 52WHi 52WLo Ticker Div Yield% P/E Vol 00s High Low…

A: Dividend yield = Dividend / Close price of stock.1.34% = 0.65 /Close price of stock.Close price of…

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: Question 1: An investor wants to evaluate the $2.5 million po described below: Stock I II III IV V…

A: CAPM is the capital assets pricing model which gives the expected return of portfolio based on the…

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

A: To calculate the weight of Asset A (Stock A) in the portfolio, we followed these steps:1. Total…

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: A B C Stock O144.67 Shares 1,000 5,000 3,000 Price_t $45 $24 $15 Price_t+1 $64 $26 $29 Based on…

A: Market Value Weighted index is determined as:

Q: Stock Price ($) Dividend Yield WSR 16 7 HCC 56 2 SNDK 80 2 You invested a total of $11,200 in shares…

A: First, we need to set up the system of equations based on the information given in the problem. We…

Q: None

A: Step 1:We have to calculate the required return on the portfolio.The required return on the…

Q: am. 180.

A: Step 1: Identify the formula for portfolio betaβp = ∑Wβwhere:βp = portfolio betaW = Weight of the…

Q: A company holds the following stock portfolio:  Stock  % of Total Portfolio  Beta Coefficient  W…

A: Portfolio Beta = Sum of (% of Total Portfolio x Beta Coefficient)

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: A portfolio has 85 shares of Stock A that sell for $40 per share and 125 shares of Sto B that sell…

A: Portfolio is a collection of investments that are financially traded like stocks, bonds,…

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…

Q: Price Forward Dividend 1T Target Est $86.36 $2.08 $105.28 Given the information in the table, if the…

A: Given Forward dividend = $2.08 1T Target Est = $105.28 Required return = 11.5%

Q: ne of the most important features of a stock is its book value. The book value per share of…

A: EPS is the amount of earnings given to the shareholders for holding one share. It is computed from…

Q: How would I complete this?

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

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: What is the geometric average return of a stock with the following share price history? Year Share…

A: Given:

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: You have invested in a portfolio consisting of Shares C, D and E. The following table shows the…

A: given, shares amount invested realised return c 370 3.54% d 480 11.53% e 610 15.57%

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

A:

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 are planning to invest in a portfolio consisting of Shares L, M and N. The following table shows…

A: Meaning of Expected return of portfolio-Expected return of portfolio is the return an investor is…

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,…

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.