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dusya [7]
3 years ago
8

3. You own a portfolio that has $4,740 invested in Stock A and $3,260 invested in Stock B. If the expected returns on these stoc

ks are 8 percent and 11 percent, respectively, what is the expected return on the portfolio
Business
1 answer:
Alina [70]3 years ago
6 0

Answer:

Portfolio expected return = 0.092225  or  9.2225%

Explanation:

The expected portfolio return is a function of the weighted average of the individual stocks' returns that form up the portfolio. The expected return on the portfolio containing two stocks can be calculated as follows,

Portfolio Expected Return = wA * rA  + wB * rB

Where,

  • w represents the weight of stocks
  • r represents the return from each stock

To calculate the weight of each stock in the portfolio, we first need to calculate the total investment in the portfolio.

Total Investment = 4740 + 3260 = 8000

Portfolio expected return = 4740/8000  *  8%  +  3260/8000  *  11%

Portfolio expected return = 0.092225  or  9.2225%

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Feliz [49]

Answer:

The cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is  $10,200.

Explanation:

In order to calculate the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders is , we have to make the following calculations.

First, we have to calculate the Annual preferred dividend = (2800*50*6.5%) = $9,100

Hence, First year preferred dividend = $9,100-$8,000 = $1,100

Finally, if we make $1,100+$9,100 = $10,200 and so this will be the cash dividend that must be paid to preferred stockholders in the second year before any dividend is paid to common stockholders.

8 0
3 years ago
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Answer:

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Explanation:

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5 0
3 years ago
Smart lites is a company that manufactures lighting products for industrial businesses. the managers at smart lites want to incr
nexus9112 [7]

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5 0
3 years ago
Your friend Kayla calls you and says "Don’t open the email you received from my email account! Something is wrong with my comput
Viefleur [7K]

Answer: spoofing or phishing

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6 0
3 years ago
A business that purchases products in large quantities from producers and then sells it to another entity is known as a _____.
BigorU [14]
A business that purchases products in large quantities from producers and then sells it to another entity is know as a distributor. 

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