1answer.
Ask question
Login Signup
Ask question
All categories
  • English
  • Mathematics
  • Social Studies
  • Business
  • History
  • Health
  • Geography
  • Biology
  • Physics
  • Chemistry
  • Computers and Technology
  • Arts
  • World Languages
  • Spanish
  • French
  • German
  • Advanced Placement (AP)
  • SAT
  • Medicine
  • Law
  • Engineering
soldi70 [24.7K]
3 years ago
10

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 sto

cks are 9 percent and 15 percent, respectively. What is the expected return on the portfolio
Business
1 answer:
Luden [163]3 years ago
7 0

Answer:

12.5%

Explanation:

A portfolio has $2,800 invested in stock A

$3,900 is invested in stock B

The expected return of stock A is 9%

= 9/100

= 0.09

The expected return of stock B is 15%

= 15/100

= 0.15

The first step is to calculate the total value

= $2,800+$3,900

= $6,700

Therefore, the expected return on the portfolio can be calculated as follows

= (2,800/6,700)×0.09 + (3,900/6,700)×0.15

= 0.4179×0.09 + 0.5820×0.15

= 0.03761 + 0.0873

= 0.1249×100

= 12.5%

Hence the expected return on the portfolio is 12.5%

You might be interested in
Lin Co., a distributor of machinery, bought a machine from the manufacturer in November for $10,000. On December 30, Lin sold th
Arisa [49]

Answer:

B. $0

Explanation:

he transaction between Lin and Zee appears to be a conditional sale. The reason being that zee hardware has the right to return the machine if unable to resell it. According to their agreement, should Zee hardware return the machine, its obligation to Lin will be zero.

As per Lin's assessment, and based on their previous transactions,  the probability of Zee returning the machine is very high. Lin is sure that Zee hardware will not sell the machine. For this reason, Lin should not record the transactions as a sale.

3 0
3 years ago
Which gas is a natural source of groundwater pollution​
marissa [1.9K]
Radon Gas - it’s a radioactive product of the decay of natural occurring uranium in earths crust.
3 0
4 years ago
Which is the largest item in discretionary spending?
maks197457 [2]

Answer:

Defense, military spendings.

Explanation:

5 0
4 years ago
A $ 5000 bond with a coupon rate of 6.7​% paid semiannually has eight years to maturity and a yield to maturity of 7.8​%. If int
prohojiy [21]

Answer:

As a result of an increase in the YTM, the price of the bond will fall $4677.19 from to $4593.67

Explanation:

The bonds are valued or priced based on the present value of annuity of interest payments and the present value of the principal. Based on the YTM of 7.8% the bonds are priced at,

coupon payment = 5000 * 0.067 *1/2  =  $167.5

Semiannual YTM = 7.8 *0.5  =  3.9%

Semi annual periods to maturity = 8 * 2  =  16 periods

Old Price = 167.5 * [( 1 - (1 + 0.039)^-16  + 5000 / (1+0.039)^16

Old Price = $4677.19

New semiannual YTM = 8.1% / 2  =  4.05%

New Price = 167.5 * [( 1 - (1+0.0405)^-16) / 0.0405] + 5000 / 1.0405^16

New Price = $4593.67

7 0
3 years ago
Y he half glasses???
vovikov84 [41]

Answer:

because he needs to see.

Explanation:

but it is adorable, maybe he needed wider glasses to fit the width of his face? i.d.k he looks like a cool kid though.

3 0
3 years ago
Other questions:
  • Traditionally, Lamme's Candies have used direct sellers to distribute its products. However, it recently made the decision to al
    13·1 answer
  • Which of the following describes a consensus?
    7·2 answers
  • Suppose that a computer software company controls the operating system market. Although the government knows that the price is h
    7·1 answer
  • Scott Equipment produces​ high-quality soccer balls. If the fixed cost per ball is $ 3 when the company produces 15 comma 000 ​b
    14·1 answer
  • How to make decimal into scientific number?<br>i.g: 4.579×106​
    9·1 answer
  • Kirkland Company combines its operating expenses for budget purposes in a selling and administrative expense budget. For the fir
    7·1 answer
  • Suppose Yolanda needs a dog sitter so that she can travel to her sister's wedding. Yolanda values dog sitting for the weekend at
    9·1 answer
  • Which statement is an example of effectively managing diversity
    8·1 answer
  • Where will your transactions take place? Is the purchaser the user of your product/service?
    13·1 answer
  • many companies view the marketing environment as a(n) __________ element to which they must react and adapt.
    7·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!