Your investment portfolio has 9,000 shares of Ball Hawks, which has an expected return of 9.60 percent and a price of $2.92per share, and 6,000 shares of stock A, which has a price of $7.81 per share. If your portfolio has an expected return of 13.80percent, then what is the expected return for stock A?16.16% (plus or minus 4 bps)8.42% (plus or minus 4 bps)9.00% (plus or minus 4 bps)4.20% (plus or minus 4 bps)None of the above is within 4 bps of the correct answer

Investment in Ball Hawks is = (No of shares * Price)Investment in Ball Hawks is =…

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

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If you have an investment portfolio which is a mix of stock and bonds, with the stocks having a return of 1.2% and the bonds having a return of 3.5% then what is the expected return of the portfolio if it contains 30% stocks.
Your portfolio is comprised of 40 percent of stock X, 20 percent of stock Y, and the rest in stock Z. Stock X has an expected return of 10%, stock Y has an expected return of 15%, and stock Z has an expected return of 2%. What is the expected return of your portfolio?
You have a portfolio that is 33 percent invested in Stock R, 17 percent invested in Stock S, with the remainder in Stock T. The expected return on these stocks is 9.4 percent, 10.8 percent, and 13.1 percent, respectively. What is the expected return on the portfolio? Multiple Choice 11.10% 11.29% 11.49% 12.05% 10.18%
You have $10,000 to invest - $3,500 in Company ABC, the remaining amount in Company CBA. The expected returns for these stocks are 20% and 15%, respectively. The expected return on your portfolio is 18.25% 16.75%13.50%17.50%
Assume a two-stock portfolio with $50,000 invested in Stock A and $30,000 invested in Stock B. The expected return of Stock A is 12% and the expected return of Stock B is -2%. What's the expected portfolio return? Group of answer choices 7.50% 6.75% 10.0% 6.0%
Suppose you invest in 130 shares of Harley-Davidson at $40 per share and 230 shares of Yahoo at $25 per share. If the price of Harley-Davidson increases to $50 and the price of Yahoo decreases to $20 per share, what is the return. on your portfolio? A. B. 10.50% 12.25% O C. 1.37% OD. -5.20%
Your portfolio is comprised of 20% of stock X, 40% of stock Y, and the rest in stock Z. Stock X has an expected return of 12% and stock Y has an expected return of 20%. If the portfolio has an expected return of 18%, what is the expected return of stock Z?
Consider a portfolio with stocks A, B, and C. The total value of the portfolio is $245,000 and it is fully invested in these 3 stocks. $85,653 is invested in A and $69,552 is invested in B. The Betas of stocks A, B, and C are 1.2, .8, and 1.62, respectively. What is the Beta of the portfolio overall?
You want to create a $72,000 portfolio comprised of two stocks plus a risk-free security. Stock A has an expected return of 13.6 percent and Stock B has an expected return of 14.7 percent. You want to own $25,000 of Stock B. The risk-free rate is 3.6 percent and the expected return on the market is 12.1 percent. If you want the portfolio to have an expected return equal to that of the market, how much should you invest in the risk-free security? Seleccione una: O a. $12,775 Qb. $13,315 O c. $13,550 O d. $12,987 O e. $12,921 4
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
You hold a diversified $100, 000 portfolio consisting of 20 stocks with $5,000 invested in each. The portfolio's beta is 1.12. You plan to sell a stock with b = 0.90 and use the proceeds to buy a new stock with b = 1.50. What will the portfolio's new beta be? Do not round your intermediate calculations. a. 1.500 b. 1.310 c 1.195 d. 1.165 e. 1.150 .
Suppose you bought $48,000 worth of stock A and $80,000 worth of stock B. The standard deviation of returns is 59% for stock A and 27% for stock B. The two stocks' returns have a correlation of 0.2. What is the standard deviation of this portfolio's returns? a. 15.2% b. 18.6% c. 23.6% O d. 26.9% O e. 30.4% QUESTION 10

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