Answered: You have a portfolio with the…

You have a portfolio with the following: Stock Number of Shares Price Expected Return W 1,050 $ 59 10% X 950 36 14 Y 700 72 12 Z 925 57 13 What is the expected return of your portfolio?

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: Pick the best answer to the following portfolio? (Round off all numbers to 2 decimal places) Amount…

A: Beta of portfolio is weighted average beta of individual securities. Beta is called as systematic…

Q: You own a portfolio that has $ 1,750 invested in Stock A and $ 3,900 invested in Stock B. If…

A: The return on the portfolio refers to the weighted average of the return of the constituent stocks.…

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 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: A portfolio consists of the following four stocks, calculate the portfolio weights in each stock.…

A: Weight = Stock Value / Portfolio value Stock value = Share price * Number of shares Portfolio…

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: You have $100,000 invested in this portfolio. $55,000 is invested in IBM: Probability of State of…

A: according to capital asset pricing model: expected return = risk free rate+beta ×market risk premium

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: 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 have a portfolio with the following: Stock W X Y Z Number of Shares 775 675 425 650 Price $ 48…

A: An expected return of a portfolio can be defined as the weighted average of expected rates of return…

Q: You are investing in a portfolio consisting two shares - D and E. You plan to invest 70% of your…

A: the expected return of a portfolio is weighted average return of individual stocks or funds or…

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 own a portfolio that has $2,500 Invested in Stock A and $3,850 Invested in Stock B. If the…

A: Investment in stock A = $2,500Investment in Stock B = $3,850Total Investment = $2,500 + $3,850 =…

Q: Problem 3. Consider the following information about Stocks A, B and C: Amount Invested Beta A…

A: Systematic risk refers to the risk that the economy faces as a whole and it cannot be mitigated by…

Q: An investor has $500,000 invested in a 2-stock portfolio. $200,000 is invested in Stock A and the…

A: Beta of portfolio is weighted average beta of all stock.

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: A company has asked you to calculate the beta for their portfolio. The portfolio has the following…

A: Beta of portfolio is weighted average beta of all stocks in portfolio.

Q: An investor is considering to buy one of the following stocks: Stock Expected rate of return Risk…

A: An investor invests their funds in various securities and the instruments of the stock market. All…

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: am. 180.

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

Q: You have a portfolio worth $75,000 consisting of 15 stocks with $5,000 invested in each. The…

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

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: You own a portfolio that has a total value of $195,000 and it is invested in Stock D with a beta of…

A: Part 2: Explanation:Step 1: Calculate the beta of the portfolio:Given that the portfolio's beta is…

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: What is the portfolio's beta

A: The risk of a portfolio relative to the market refers to the systematic risk of the portfolio, which…

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: Which stock constitutes the best buying opportunity if CAPM is your benchmark?

A: The formula to determine the expected return using CAPM formula is as below: Expected Return =…

Q: You own a portfolio that has $1,800 invested in Stock A and $2,900 invested in Stock B. If the…

A: Excel Spreadsheet: Excel Workings:

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: An investor is forming a portfolio by investing $8,000 in stock A which has a beta of 0.80, and…

A: Portfolio Beta is the weighted sum of the individual asset betas. Formula to calculate Portfolio…

Q: Currently, you own a portfolio comprised of the following three securities. How much of the riskiest…

A: Calculation of Total value of the current portfolio:Stock D13640Stock E15980Stock…

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: Given You own a portfolio of two stocks, A and B. Stock A is valued at $10,500 and has an expected…

A: Portfolio refers to basket of different financial assets in which investment is made by single…

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

A: stockinvestmentweightbetaexpected…

Q: You have $19,878 to invest in a stock portfolio. Your choices are Stock "X" with an expected return…

A: “Since you have asked multiple questions, we will solve the one question for you. If you want any…

Q: What is the expected return of your 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: You own a portfolio that has $2,650 invested in Stock A and $4,450 invested in Stock B. If the…

A: The portfolio value is the sum of the value of the individual assets in a portfolio. The portfolio…

Question

You have a portfolio with the following:

Stock	Number of Shares	Price	Expected Return
W	1,050	$ 59	10%
X	950	36	14
Y	700	72	12
Z	925	57	13

What is the expected return of your portfolio?

Expert Solution

This question has been solved!

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

This is a popular solution!

SEE SOLUTION Check out a sample Q&A here

Step 1

VIEW

Step 2 computation of Portfolio return

VIEW

Trending now

This is a popular solution!

Step by step

Solved in 2 steps with 1 images

SEE SOLUTION Check out a sample Q&A here

Similar questions

You have a portfolio with the following: Stock Number of Shares W NAXM 1,075 975 Y Z 725 950 Price $ 60 6325 37 73 58 Expected Return 12% 16 14 15 What is the expected return of your portfolio? Note: Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16. Expected return
step by step explaination (no excel)
Pick the best answer to the following portfolio? (Round off all numbers to 2 decimal places) Stock Amount Invested Beta A $6,700 1.16 B 3,000 1.23 C 8,500 0.79 Group of answer choices The portfolio has more systematic risk than the market. The portfolio has more total risk than the market. The portfolio has no systematic risk. The portfolio has same systematic risk as the market. The portfolio has less systematic risk than the market.
What would be impact on price of stock if the required rate of return moves to, 12.5 percent, 13.5 percent and 14.5 percent? (Hint: Support your argument with help of graph
An investor has a 2-stock portfolio with $25,000 invested in Stock X and $50,000 invested in Stock Y. X's beta is 1.50 and Y s beta is 0.60. What is the beta of the investor's portfolio?
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
What is the intrinsic price of a stock that pays a dividend of $2.43, has a dividend growth rate of 3.5% and a Beta of 1.20? The market return is 5.15% and the risk free rate is 3%. O A. $21.84 O B. $33.66 O C. $40.67 O D. $120.92 QUESTION 18 What is the intrinsic price of a stock that pays a dividend of 60 cents, has a dividend growth rate of 4.80% and a Beta of 2.57? The market return is 7.75% and the risk free rate is 2.5%. O A. $1.22 O B. $5.62 O C. $6.19 O D. $25.39
Donald Gilmore has $100,000 invested in a 2-stock portfolio. $77,500 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta? Select the correct answer. a. 1.26 b. 1.28 c. 1.30 d. 1.34 e. 1.32
Donald Gilmore has $100,000 invested in a 2-stock portfolio. $70,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta? Select the correct answer. a. 1.31 b. 1.36 c. 1.41 d. 1.46 e. 1.26
Give typing answer with explanation and conclusion
None
Give the return of the stock in which you would most likely invest and show the preferred order of the stocks if you were considering further investment, all other things being equal. Stock Beta Risk-Free Market-Rate CA-K 0.95 5.5% 9% AU-L 1.05 6% 8.5% TT-M 1.10 5% 8%

SEE MORE QUESTIONS

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