You own a portfolio that has $1,800 invested in Stock A and $2,900 invested in Stock B. If the expected returns on these stocks are 9% and 15%, respectively, what is the expected return on the portfolio?
Q: A portfolio consists of $17,000 in Stock M and $27,900 invested in Stock N. The expected return on…
A: Given information: Stock M amount is $17,000 Stock N amount is $27,900 Expected return on Stock M is…
Q: You own a portfolio that has $42,000 invested in Stock A and $11,500 invested in Stock B. If the…
A: To Find: Expected return on portfolio
Q: You have a portfolio consisting solely of Stock A and Stock B. The portfolio has an expected return…
A: In this we have to calculate weighted average return of portfolio.
Q: A portfolio consists of $17,600 in Stock M and $29,400 Invested in Stock N. The expected return on…
A: Given:
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 $12,260 to invest in a stock portfolio. Your choices are StockX with an expected return of…
A: Return on stock X is 14.2%. Return on stock Y is 8.61%. Let the amount invested in stock X is $A.…
Q: You own a portfolio that has $2,450 invested in Stock A and $3,250 invested in Stock B. If the…
A: Expected rate of return on portfolio = [(Weight of stock A * Return on stock A) + ( weight of stock…
Q: ASsume the following data for a stock: Beta 15, risk-free rate = 4 percent, market rate of return 12…
A:
Q: You own a portfolio that is 28 percent invested in Stock X, 43 percent in Stock Y, and 29 percent in…
A: Portfolio is the collection of securities. portfolio return formula: portfolio return =∑nwn×rn…
Q: You own a portfolio that has $2,600 invested in Stock A and $3,700 invested in Stock B. Assume the…
A: The expected return of the portfolio is the weighted average return
Q: You own a portfolio that has $3,200 invested in Stock A and $4,200 invested in Stock B. If the…
A: Value of stock A = $3,200 Value of stock B = $4,200 Value of portfolio ($3,200 + $4,200) = $7,400…
Q: You own a portfolio that has $3,000 invested in Stock A and $4,100 invested in Stock B. Assume the…
A: The expected return on portfolio is calculated as weighted proportion of stock multiplied by the…
Q: An investor wishes to construct a portfolio by borrowing 40% of his original wealth and investing…
A: Amount borrowed at 3% = 40% of his total wealth This amount Invested in stock index. Weight of Stock…
Q: Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and…
A: The fraction of investment can be calculated by using this equation Fraction =Individual…
Q: How do I calculate the Portfolio Expected Return: You own a portfolio that has $4,600 invested in…
A: In this question we are required to calculate expected return of our portfolio having two stocks…
Q: ou own a portfolio consisting of 35% Treasury bills and 65% stock Q. The return for Treasury bills…
A: Portfolio weight of T-Bill = 35% Portfolio weight of stock Q = 65% T-Bill return = 3% Stock Q return…
Q: Your portfolio consists of115 shares of CSH and 75 shares of EJH, which you just bought at $22and…
A: A portfolio is made of different stocks. The portfolio return depends upon the individual returns…
Q: You own a portfolio that is 17 percent invested in Stock X, 32 percent in Stock Y, and 51 percent in…
A: The expected return of the portfolio can be calculated as the sum of individual weight of stock…
Q: Your portfolio consists of 125 shares of CSH and 60 shares of EJH, which you just bought at $20 and…
A: CSH share= 125 shares @$20 each EJH share= 60 shares @31 per share Initial portfolio weights CSH…
Q: A portfolio is invested 27 percent in Stock G, 42 percent in Stock J, and 31 percent in Stock K. The…
A: The expected return of a portfolio refers to the sum of proportionate returns from each element of…
Q: Assume that you own a portfolio consisting of the following stocks: Stock Percentage of Portfolio…
A: The expected return on a portfolio calculates the expected value of a portfolio. The probability…
Q: You own a portfolio that is 23 percent invested in Stock X, 38 percent in Stock Y, and 39 percent in…
A: Stock Weight Return X 23% 11% Y 38% 14% Z 39% 16%
Q: Suppose you have four stocks in your portfolio and the beta of your portfolio is 1.06. You have…
A: Beta of Portfolio = Beta of A * Weight of A +Beta of B * Weight of B+Beta of C * Weight of C+Beta of…
Q: You own a portfolio that has $2,600 invested in Stock A and $3,700 invested in Stock B. Assume the…
A: The expected return is the return of the portfolio which is the sum of each potential return that is…
Q: a portfolio consisting of 35% Treasury bills and 65% stock Q. The return for Treasury bills is 3%.…
A: In this we have to calculate the weighted return of portfolio and also risk.
Q: Of the $10,000 invested in a two-stock portfolio, 30 percent is invested in Stock A and 70 percent…
A: Beta: Beta can be defined as the measure of instability of a separate stock relative to the…
Q: Suppose you have portfolio of four stocks Stock A, B, C and D, Total investment in these stocks is…
A: According to CAPM required rate is equivalent to risk free rate plus market risk premium.
Q: Stock A and Stock B have the following historical returns: Year Stock A’s Returns,…
A: Average return is sum of the return to the number of years.…
Q: tock A and Stock B have the following historical returns: Year Stock A’s Returns,…
A: Hi, since there are multiple questions posted, we will answer the first three sub-part questions. If…
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: A portfolio is invested 22 percent in Stock G, 26 percent in Stock J, with remainder in Stock K. The…
A: The formula to calculate portfolio expected return is given below:
Q: Assume that you formed a portfolio of three stocks A, B, C. The return for stock A is 10%, the…
A: Portfolio Return is the weighted average return of individual stocks in the portfolio Portfolio…
Q: You own a portfolio that has $2,800 invested in Stock A and $3,900 invested in Stock B. Assume the…
A: Portfolio return is the gain or loss realized investment portfolio with different stock. formula:…
Q: Portfolio Expected Return. You own a portfolio that has $2,750 invested in Stock A and $3,900…
A: In this question we are required to calculate expected return of our portfolio having two stocks…
Q: a) Assume that you bought 200 stock B in your portfolio for total investment of $1200, now the…
A: a) Capital Gain on the stock is computed as follows: Price per share=Total InvestmentNo. of…
Q: You have a portfolio that is invested 23 percent in Stock A, 36 percent in Stock B, 41 percent in…
A: Beta of the portfolio is the sum of the product of the weight of the stocks and beta of the stocks.
Q: You own a portfolio that has $2,045 invested in Stock A and $4,096 invested in Stock B. If the…
A: Formula:
Q: What is the portfolio’s expected return?
A: Portfolio expected return is the return that is expected to generate from a portfolio. Generally…
Q: Suppose Wesley Publishing's stock has a volatility of 70%, while Addison Printing's stock has a…
A: Portfolio volatility is measured by combined standard deviation formula.
Q: Mr. Jones has a 2-stock portfolio with a total value of $550,000. $185,000 is invested in Stock A…
A: The formula to calculate the expected risk on the portfolio (standard deviation of the portfolio…
Q: Assume that you bought 200 stock B in your portfolio for total investment of $1200, now the market…
A: Capital gain is the determination of any profits or gains arises out of sale or transfer of any…
Q: You have a portfolio with the following: Stock Number of Shares Price Expected Return $62 14% 1,125…
A: Formulas:
Q: You own a portfolio that consists of $17,800 in Stock X with an expected return of 10.20 percent and…
A:
Q: a. You expect an RFR of 10 percent and the market return (RM) of 14 percent. Compute the expected…
A: Part (a)RFR = 10%The market return, RM = 14%The expected return for a stock using CAPM equation is:…
Q: You have $260,000 to invest in a stock portfolio. Your choices are Stock H, with an expected return…
A: The expected return of a portfolio helps the investor to determine the performance of the portfolio.
Q: Stock A and Stock B have the following historical returns: Year Stock A’s Returns,…
A: “Hey, since you have posted a question with multiple sub-parts, we will answer first three sub parts…
Q: Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and…
A: Given that: The portfolio consists of 100 shares of CSH and 50 shares of EHJ Purchase price $20and…
Q: A portfolio consists of $15,000 in Stock M and $22,900 invested in Stock N. The expected return on…
A: Amount invested in Stock M is $15000, expected return is 8.80% Amount invested in Stock N is $22,990…
Q: Stock Investment Expected Return A $ 5,000 12% B 10,000 10 C 15,000 14
A: The expected return for an investment portfolio is the weighted average of the expected return of…
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- You own a portfolio that has $2,800 invested in Stock A and $3,900 invested in Stock B. Assume the expected returns on these stocks are 9 percent and 15 percent, respectively. What is the expected return on the portfolio? (You own a portfolio that has $3,00o0 invested in Stock A and $4,100 invested in Stock B. Assume the expected returns on these stocks are 10 percent and 16 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %Assume you have invested in two other stocks: Stock A has a beta of 1.20 and Stock B has a beta of 0.8. Rf= 2% and Rm = 12%. Using CAPM, what are the expected returns for each stock? Return of stock = Risk free rate + beta ( market rate of return - risk free rate of return) Return of Stock A = 2% + 1.20 (12% - 2%) = 2.12% Return of Stock B = 2% + 0.80 (12% - 2%) = 2.08% What is the expected return of an equally weighted portfolio of these two stocks? Weight of stock A = 0.50 Weight of Stock B = 0.50 Expected return = (Return of Stock A * weight of Stock A) + (Return of Stock B * weight of stock B) = (2.12 * 0.50) + (2.08*0.50) = 1.06 + 1.04 = 3% What is the beta of an equally weighted portfolio of these two stocks? Beta of portfolio = (Beta of Stock A * weight of stock A) + (Beta of Stock B * weight of Stock B) = (1.20*0.50) + (0.80*0.50) = 0.60 + 0.40 = 1 Beta of portfolio = 1 (iv) Sketch the SML to represent the…
- Assume you have invested in two other stocks: Stock A has a beta of 1.20 and Stock B has a beta of 0.8. Rf= 2% and Rm = 12%. (i) Using CAPM, what are the expected returns for each stock? Return of stock = Risk free rate + beta ( market rate of return - risk free rate of return) Return of Stock A = 2% + 1.20 (12% - 2%) = 2.12% Return of Stock B = 2% + 0.80 (12% - 2%) = 2.08% (ii) What is the expected return of an equally weighted portfolio of these two stocks? Weight of stock A = 0.50 Weight of Stock B = 0.50 Expected return = (Return of Stock A * weight of Stock A) + (Return of Stock B * weight of stock B) = (2.12 * 0.50) + (2.08*0.50) = 1.06 + 1.04 = 3% (iii) What is the beta of an equally weighted portfolio of these two stocks? Beta of portfolio = (Beta of Stock A * weight of stock A) + (Beta of Stock B * weight of Stock B) = (1.20*0.50) + (0.80*0.50) = 0.60 + 0.40 = 1 Beta of portfolio = 1 (iv) Sketchthe SML to…You own a portfolio that has $5,607 invested in Stock A and $2,853 invested in Stock B. If the expected returns on these stocks are 0.12 and -0.09, respectively, what is the expected return on the portfolio? Enter the answer with 4 decimals (e.g. 0.1234).You own a portfolio that has $2,450 invested in Stock A and $3,250 invested in Stock B. If the expected returns on these stocks are 13 percent and 15 percent, respectively, what is the expected return on the portfolio?(Do not round your intermediate calculations.)
- You own a portfolio that is 22 percent invested in Stock X, 37 percent in Stock Y, and 41 percent in Stock Z. The expected returns on these three stocks are 12 percent, 15 percent, and 17 percent, respectively. What is the expected return on the portfolio? Expected return _________%You own a portfolio that has $2,045 invested in Stock A and $4,096 invested in Stock B. If the expected returns on these stocks are 14 percent and 8 percent, respectively, what is the expected return (in percent) on the portfolio? Answer to two decimals.Stocks A and B have expected returns of 0.119 and 0.133, respectively. You form a portfolio consisting of $5,000 in Stock A and $6,000 in Stock B. What is your portfolio's expected return? Enter your answer as a decimal and show 4 decimal places. Type your answer... Previous
- what are the two type parts of most stocks expected total return? if D1=$2.00, g= 6% and po $40.00, what are the stocks expected dividend yield, capital gains yield, and total expected return for the coming year?Consider an investment portfolio that consists of three different stocks, with the amount invested in each asset shownbelow. Assume the risk-free rate is 2.5% and the market risk premium is 6%. Use this information to answer thefollowing questions.Stock Weights BetasChesapeake Energy 25% 0.8Sodastream 50% 1.3Pentair 25% 1.0a) Compute the expected return for each stock using the CAPM and assuming that the stocks are all fairly priced.b) Compute the portfolio beta and the expected return on the portfolio.c) Now assume that the portfolio only includes 50% invested in Pentair and 50% invested in Sodastream (i.e., a twoassetportfolio). The yearly-return standard deviation of Pentair is 48% and the yearly-return standard deviation ofSodastream is 60%. The correlation coefficent between Pentair’s returns and Sodastream’s returns is 0.3 What is theexpected yearly-return standard deviation for this portfolio?A) What expected return should an investor expect from investments in common stock? You are given the following information: Risk free rate of return = 4%; market risk premium = 11%; Beta of the stock (assume CAPM holds) = 0.72. B) Stock A with beta of 0.8 offers a 11% return while stock B with a beta of 1.2 offers a 15% return. What is the risk-free rate? What is the common market return? Assume CAPM holds.