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Otrada [13]
3 years ago
6

A portfolio consists of $15,200 in Stock M and $23,400 invested in Stock N. The expected return on these stocks is 8.90 percent

and 12.50 percent, respectively. What is the expected return on the portfolio
Business
1 answer:
bonufazy [111]3 years ago
8 0

Answer:

Portfolio return = 11.08%

Explanation:

<em>The expected return on the portfolio is the weighted average return of all the different stocks making up the portfolio. The weight of the individual stock would be the relative amount invested in each stock as a proportion of the total fund invested.</em>

The expected return can be determined as follows

Weighted of stock A= 15,200/(15200+23400)=0.39

Weight of stock B = 23.400/((15200+23400)=   0.61  

Expected return on portfolio = (0.39 ×8.90% )  + (0.61*12.50%)= 11.08 %

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annual percentage rate

The effective tax rate of return from an investment for a year, taking into account compound interest, is known as the annual percentage yield (APY). The amount that lenders charge borrowers as a proportion of the principle is called the interest rate. Additionally, it is the sum derived from deposit accounts.

The annual interest produced by an amount that is paid to investors or levied to borrowers is referred to as the annual percentage rate (APR). APR is a percentage that expresses the real annual cost of borrowing money throughout the course of a loan or the revenue from an investment. This does not account for compounding and includes any fees or other expenditures related to the transaction.

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Shelley’s Salsa produces and sells organic salsa. Last year it sold 3 million tubs of salsa at a price of $3 per tub. For last y
Murrr4er [49]

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Answer:

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Explanation:

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Keep your guard up and stop trusting everyone on brainly

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