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sleet_krkn [62]
3 years ago
6

Your portfolio has three asset classes. U.S. government​ T-bills account for 47​% of the​ portfolio, large-company stocks consti

tute another 38​%, and​ small-company stocks make up the remaining 15​%. If the expected returns are 4.08​% for the​ T-bills, 11.38​% for the​ large-company stocks, and 15.53​% for the​ small-company stocks, what is the expected return of the​ portfolio?
Business
2 answers:
12345 [234]3 years ago
5 0

Answer:

ER = 8.57%

Explanation:

The total expected return can be calculated by computing return with weights of the portfolio.

Expected Return

= W1*R1 + W2*R2 +W3*R3

where W1 is the weight of 1 asset and subsequent assets as W2 and W3.

R1 = return of assets and subsequent assets as R2 and R3,

ER = 0.47(0.0408) + 0.38(0.1138) + 0.15(0.1553)

ER = 8.57%

Hope that helps.

Katena32 [7]3 years ago
3 0

Answer:

Expected return of the​ portfolio = 8.57%

Explanation:

The expected return of the portfolio is the weighted average return of all assets in that portfolio, which is calculated as below:

The expected return of the portfolio = (Weight of U.S. government​ T-bills x Return of U.S. government​ T-bills) + (Weight of large-company stocks x Return of large-company stocks) +  (Weight of small-company stocks x Return of small-company stocks)

= 47% x 4.08% + 38% x 11.38% + 15% x 15.53% = 8.57%

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melamori03 [73]

Answer:

Isabel Martínez de Perón

Explanation:

Isabel Martinez de Perón of Argentina was the very first woman or lady to serve as leader of a country as president, taking over as vice president following her husband died in 1974.

On July 21, 1960, Sirimavo Bandaranaike was chosen as the world's first women Prime Minister.

5 0
3 years ago
You purchased 100 shares of IBM common stock on margin at $130 per share. Assume the initial margin is 50%, and the maintenance
N76 [4]

Answer:

$46.43

Explanation:

Calculation for Below what stock price level would you get a margin call

First step is to calculate the Loan amount

Loan amount=(100 shares × $130 × 0.5

Loan amount= $6,500 × 0.5 = $3,250

Now let calculate Stock price level

0.30 = (100P $3,250)/100P

30 - P = 100P - $3,250

30-100P= - $3,250

-70P = -$3,250

P=$3,250/70

P = $46.43

Therefore Below what stock price level would you get a margin call will be $46.43

7 0
3 years ago
Earl holds 1,000 pounds of perishable fruit in storage for fresh food corporation. fresh food does not pay for the storage. earl
Sergeeva-Olga [200]
This sale represent A MITIGATION OF DAMAGE.
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8 0
4 years ago
J Corporation has two divisions. Division A has a contribution margin of $79,300 and Division B has a contribution margin of $12
Allushta [10]

Answer:

Net income= $98,200

Explanation:

Giving the following information:

Division A:

The contribution margin of $79,300

Division B:

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The total traceable fixed costs are $72,400 and total common fixed costs are $34,900.

<u>To calculate the net operating income, we need to deduct from the combined contribution margin the fixed costs.</u>

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7 0
3 years ago
In a dealer market, some dealers hold a certain inventory of specific securities and create a liquid market by purchasing and se
UNO [17]

Answer:

Dealers profit comes from the spread primarily. Spread is the differential amount between buying and selling.

Explanation:

Let us assume the price of security X is USD 100 (last trade price)

A dealer will purchase this security at discounted price from the investor say USD 99 and will sell the same security in the market at USD 100, thus earning spread.

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