You have $21,600 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14.3 percent and Stock Y with an expected return of 8.1 percent. Your goal is to create a portfolio with an expected return of 12.5 percent. All money must be invested. How much will you invest in Stock X? O $15,800 O $18,273 O $14,600 O $15,329

You have $21,600 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14.3 percent and Stock Y with an expected return of 8.1 percent. Your goal is to create a portfolio with an expected return of 12.5 percent. All money must be invested. How much will you invest in Stock X? O $15,800 O $18,273 O $14,600 O $15,329

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

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You have $208,567 to invest in a stock portfolio (this amount is your original wealth). Your choices are Stock H, with an expected return of 16.03 percent, and Stock L, with an expected return of 9.92 percent. Legal constraints require you to invest at least $45,426 in stock L. If your goal is to create a portfolio with an expected return of 20.66 percent on your original wealth, what is the minimum amount you must borrow (and subsequently repay) at the risk free rate of 4.21 percent to achieve your goal? Answer in $ to two decimals.
You have $150,000 invested in three stocks as follows: Stock Investment Stock's Beta SYK $50,000 1.9 ISRG $50,000 1.2 YUM $50,000 (a) What is the beta value of your portfolio? (b) You desire a portfolio of 1.15 and will achieve this by selling $25,000 of ISRG and an additional amount SYK, with the proceeds of both sales to purchase YUM. What dollar amount of SYK should you sell? What dollar amount of YUM will you purchase? 0.9
Your portfolio consists of 95 shares of CSH and 55 shares of EJH, which you just bought at $21.68 and $31.95 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to $25.93 and EJH decreases to $29.27, what is the return on your portfolio?
Examples Given You own a portfolio of two stocks, A and B. Stock A is valued at $10,500 and has an expected return of 11 percent. Stock B has an expected return of 9 percent. What is the expected return on the portfolio if the portfolio value is $15,500?
You want to create a portfolio equally as risky as the market, and you have $2,700,000 to invest. Given this information, fill in the rest of the following table: (Do not round intermediate calculations. Round your answers to 2 decimal places (e.g., 32.16).) Asset Stock A Stock B Stock C Risk-free asset Investment $ 459,000 $ 783,000 $ LA LA $ Beta 1.00 1.40 1.60
I own a portfolio that has $10000 invested in stock X and $15000 invested in stock B. If the expected return on these stocks are 9% and 8% , what is the expected return on the portfolio?
Suppose you have $375,000 in cash, and you decide to borrow another $63,750 at a 7% interest rate to invest in the stock market. You invest the entire $438,750 in a portfolio J with a 20% expected return and a 28% volatility. a. What is the expected return and volatility (standard deviation) of your investment? b. What is your realized return if J goes up 39% over the year? c. What return do you realize if J falls by 19% over the year?
3
man.3
You have $37,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 14.7 percent and Stock Y with an expected return of 7.1 percent. Your goal is to create a portfolio with an expected return of 13 percent. All money must be invested. How much will you invest in Stock X? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Suppose Stella invests $20,000 in Facebook stock, and $30,000 in HoneywellInternational stock. She expects a return of 16% for Facebook and 10% for Honeywell. Whatis her portfolio’s expected return? Round your answer to two decimal places.A. 11.50%B. 12.40%C. 13.00%D. 13.60%E. 14.50%
You are holding a portfolio with the following investments and betas: Stock Dollar investment Beta А $250,000 1.25 B 200,000 1.70 с 400,000 0.85 D 150,000 -0.25 Total investment $1,000,000 The market's required return is 10% and the risk-free rate is 3%. What is the portfolio's required return? Do not round intermediate calculations. Round your answer to three decimal places. %

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