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
ivanzaharov [21]
3 years ago
15

You own a portfolio that has $2,650 invested in Stock A and $4,450 invested in Stock B. If the expected returns on these stocks

are 8 percent and 11 percent, respectively, what is the expected return on the portfolio
Business
1 answer:
barxatty [35]3 years ago
6 0

Answer:

9.88%

Explanation:

Calculation for the expected return on the portfolio

First step is to find Total portfolio vale using this formula

Total portfolio vale=(Stock A portfolio + Stock B portfolio)

Let plug in the formula

Total portfolio vale= (2,650+4,450)

Total portfolio vale= 7,100

Second step is to calculate for the Expected portfolio return of Stock A by dividing Stock A portfolio by the Total portfolio vale then multiply it by the expected returns percentage

Expected portfolio return Stock A = 2,650 / 7,100

Expected portfolio return Stock A = 0.3732 *0.08

Expected portfolio return Stock A =0.02986

The third step is to calculate for the Expected portfolio return of Stock B by dividing Stock B portfolio by the Total portfolio vale then multiply it by the expected returns percentage

Expected portfolio return Stock B=$4,450/$7,100

Expected portfolio return Stock B=0.6268 *0.11 Expected portfolio return Stock B= 0.06895

The last step is add up the expected return on the portfolio for both Stock A and Stock B

Using this formula

Expected return on the portfolio=(Stock A Expected return on the portfolio + Stock B Expected return on the portfolio)

Let plug in the formula

Expected return on the portfolio=0.02986+0.06895

Expected return on the portfolio= 0.0988 *100 Expected return on the portfolio= 9.88%

Therefore the expected return on the portfolio will be 9.88%

You might be interested in
Preparing Adjusting Entries, Financial Statements, and Closing Entries
strojnjashka [21]

Answer:

1. Cash (Dr.) $145,850

Sales (Cr.) $145,850

2. Purchases (Dr.) $76,200

Accounts Payable (Cr.) $76,200

3. Accounts Payable (Dr.) $4,100

Cash (Cr.) $4,100

4. Prepaid Rent (Dr.) $24,000

Cash (Cr.) $24,000

5. Wages Expense (Dr.) $12,500

Cash (Cr.) $12,500

Wages Expense (Dr.) $350

Wages Payable (Cr.) $350

6. Depreciation Expense (Dr.) $1,700

Accumulated Depreciation (Cr.) $1,700

Explanation:

Journal entries are recorded for the business transactions. These transaction incurred in the business are recorded in the books of accounts. These journal entries then create Ledger and Trial balance.

3 0
2 years ago
Quip Corporation wants to purchase a new machine for $300,000. Management predicts that the machine will produce sales of $200,0
butalik [34]

Answer:

net present value NPV = $79800

so correct option is D) $79,800

Explanation:

solution

we knw that Net Present value = PV of cash inflow - PV of cash outflow    ............1

so here PV of cash outflow = $300000  

and Net sales = $200000

expenses = $80000

Depreciation =  \frac{300000-50000}{5}

Depreciation =  $50000

so Net income before taxes  = Net sales - Depreciation - expenses

Net income before taxes =  $200000  - $80000 - $50000

Net income before taxes =  $70000

and Tax expenses @ 40% = $28000

so

Net income = Net income before taxes - Tax expenses

Net income = $70000  - $28000

Net income = $42000

and

Depreciation = $50000

Net cash inflow =  Net income + Depreciation

Net cash inflow =  $42000  + $50000

Net cash inflow = $92000

and

PVIFA @ 10% 5 years = $3.7908

so

PV of cash inflow = $348755

PV of salvage value = $50000 ×0.6209

PV of salvage value = $31045

and

so here  Total PV of total cash inflow = $379800

and

net present value  NPV =  Total PV of total cash inflow - PV of cash outflow

net present value NPV = $379800 - $300000

net present value NPV = $79800

so correct option is D) $79,800

7 0
3 years ago
If the ratio for unit cost to sales price for a product is 1:4, how much would the selling price be for a product if it has a un
Mkey [24]
Ratio and proportion is a useful method in determining a value using a known constant in ratio form. In this case, the ratio of cost to price is always 1/4. Hence, the solution goes as follows:

1/4 = 33.85/price
Price = 33.85*4
Price= $135.4 
6 0
3 years ago
The cost to manufacture one unit of Killian Audio Products' best-selling hearing aid, the Zone, is $67.50. The CFO of the compan
ikadub [295]

Answer:

Economies of scale

Explanation:

Economies of scale refers to reducing total costs per unit by increasing total output. All companies have certain fixed costs, some companies have higher fixed costs than others, but they always exist. When you are producing something, the cost equation is production costs = variable costs per unit + average fixed costs per unit.

Variable costs vary directly with output, while fixed costs do not, e.g. salaries can be fixed, depreciation, rent, interests, etc. The higher the output, the lower the average fixed cost per unit.

Also, sometimes variable costs can also decrease as total output increases. E.g. you can get higher discounts for purchasing larger quantities of materials and supplies.

4 0
3 years ago
 Because of its importance in summarizing your strategy, the Introduction and Overview of your business plan should be 
Rashid [163]

Answer:

Because of its importance in summarizing your strategy, the Introduction and Overview of your business plan should be written last-B.

3 0
3 years ago
Other questions:
  • The following transactions relate to the petty cash fund of Jarvis Wrecking Company: Apr. 1 19 The petty cash fund is set up wit
    9·1 answer
  • You are tearing down a building and find $1 in change that someone lost when working on the building 140 years ago. If, instead
    7·1 answer
  • Suzuki Supply reports the following amounts at the end of 2021 (before adjustment). Credit Sales for 2021 $ 260,000 Accounts Rec
    11·1 answer
  • Scott is a woodworker and charges $125 an hour for his time manufacturing custom-made wood products. For his wife's birthday, he
    7·1 answer
  • The owner of a greenhouse and nursery is considering whether to spend $6,000 to acquire the licensing rights to grow a new varie
    13·1 answer
  • The Material Safety Data Sheet provides inventory quantity and availability information that is updated on a continuous basis as
    13·1 answer
  • Making tax-deferred deposits into a retirement account means that the funds are
    13·1 answer
  • In the case of ________, it was determined that a test for promotion of firefighters to certify test scores was discarded becaus
    5·1 answer
  • quantum mechanics shop sells a bicycle to reniel, a costumer who uses a local card(a national credit card, but not issued by an
    13·1 answer
  • McDonald's Corp has a preferred stock paying a dividend of $19 and has a market price of $178. Calculate the cost of capital for
    8·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!