MINDTAP FINANCE FOR GARMAN/FORGUE'S PER
13th Edition
ISBN: 9781337288347
Author: FORGUE
Publisher: CENGAGE LEARNING - CONSIGNMENT
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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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