EBK CORPORATE FINANCE
EBK CORPORATE FINANCE
4th Edition
ISBN: 8220103145947
Author: DeMarzo
Publisher: PEARSON
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Chapter 26.5, Problem 2CC
Summary Introduction

To discuss: Just-in-time inventory management.

Introduction:

Just-in-time management is a management strategy which increases efficiency and decreases the storage of stocks.

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Growth rates Jamie El-Erian is a savvy investor. On January 1, 2010, she bought shares of stock in Amazon, Chipotle Mexican Grill, and Netflix. The table, , shows the price she paid for each stock, the price she received when she eventually sold her shares, and the date on which she sold each stock. Calculate the average annual growth in each company's share price over the time that Jamie held its stock. The average annual growth for Amazon is The average annual growth for Chipotle is The average annual growth for Netflix is %. (Round to two decimal places.) %. (Round to two decimal places.) %. (Round to two decimal places.)
Your portfolio has three asset classes. U.S. government T-bills account for 48% of the portfolio, large-company stocks constitute another 33%, and small-company stocks make up the remaining 19%. If the expected returns are 4.71% for the T-bills, 14.13% for the large-company stocks, and 19.85% for the small-company stocks, what is the expected return of the portfolio? The expected return of the portfolio is %. (Round to two decimal places.)
betas: A, 0.4 B, 1.5 C, -0.4 D, 1.7
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