Your investment portfolio has 9,000 shares of Ball Hawks, which has an expected return of 7.00 percent and a price of $3.09 per share, and 6,000 shares ofstock A, which has a price of $7.84 per share. If your portfolio has an expected return of 12.90 percent, then what is the expected return for stock A?9.40% (plus or minus 4 bps)16.39% (plus or minus 4 bps)5.90% (plus or minus 4 bps)8.76% (plus or minus 4 bps)None of the above is within 4 bps of the correct answer

Answered: Image /qna-images/answer/6a825c7b-b1f0-412b-8019-2572b73f2e46.jpg

Answered: Your investment portfolio has 9,000…

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

Similar questions

You own a portfolio that has $2,000 invested in Stock A and $8000 invested in Stock B. If the expected returns on these stocks are 20 percent and 16 percent, respectively, find the expected return of your portfolio. O 17.60% O 17.15% O 19.05% 18.80% O 16.80%
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?
Your portfolio consists of 85 shares of CSH and 50 shares of EJH, which you just bought at $19.84 and $28.74 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to $22.28 and EJH decreases to $26.28, what is the return on your portfolio? a. What fraction of your portfolio is invested in CSH? In EJH? The fraction invested in CSH is %. (Round to two decimal places.) ...
You own a portfolio that has $2,500 Invested in Stock A and $3,850 Invested in Stock B. If the expected returns on these stocks are 9 percent and 15 percent, respectively, what Is the expected return on the portfolio? Multiple Choice O 12.64% O 12.89% O 13.27% O 11.36% 12.00%
You own a portfolio that has $16,000 invested in Stock A and $17,000 invested in Stock B. The expected returns on these stocks are 14.9 percent and 9.7 percent, respectively. What is the expected return on the portfolio?
You own a portfolio that has $42,000 invested in Stock A and $11,500 invested in Stock B. If the expected returns on these stocks are 18% and 6%, respectively, what comes closest to the expected return on the portfolio? 12% 15.4% 14.5% 12.2% 16.8%
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?
Your portfolio consists of 125 shares of CSH and 60 shares of EJH, which you just bought at $20 and $31 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to $21 and EJH decreases to $28, what is the return on your portfolio? a. What fraction of your portfolio is invested in CSH? In EJH? The fraction invested in CSH is 57.3 %. (Round to one decimal place.) The fraction invested in EJH is 42.7 %. (Round to one decimal place.) b. If CSH increases to $21 and EJH decreases to $28, what is the return on your portfolio? The return on the portfolio is %. (Round to one decimal place.)
Your portfolio consists of115 shares of CSH and 75 shares of EJH, which you just bought at $22and $28 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to$24 and EJH decreases to $24,what is the return on your portfolio?
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 is invested 32% in share A, 43% in share B and the remainder in share C. The expected returns on shares A, B and C are 11.5%, 15.2% and 8.8%, respectively. What is the expected return on the portfolio? a. 11.71% b. 12.18% c. 12.83% d. 12.42% e. 12.49%
You own a portfolio that has 1,000 shares of stock A, which is priced at $13.43 per share and has an expected return of 16.85 %, and 3,000 shares of stock B, which is priced at $9.10 per share and has an expected return of 7.61%. The risk-free return is 4.72% and inflation is expected to be 2.75%. What is the risk premium for your portfolio? 7.91% (plus or minus 4 bps) 7.51% (plus or minus 4 bps) 5.94% (plus or minus 4 bps) 10.66% (plus or minus 4 bps) None of the above is within 4 bps of the correct answer

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

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