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
Arada [10]
3 years ago
9

ou own a portfolio that is 30 percent invested in Stock X, 20 percent in Stock Y, and 50 percent in Stock Z. The expected return

s on these three stocks are 11 percent, 17 percent, and 13 percent, respectively. What is the expected return on the portfolio
Business
1 answer:
mixer [17]3 years ago
3 0

Answer:

The expected return on the portfolio is:

= 13.2%

Explanation:

a) Data and Calculations:

Portfolio

Stock      Percentage  Expected    Weighted

                 Holding       Returns       Returns

Stock X        30%            11%                3.3%

Stock Y        20%            17%               3.4%

Stock Z        50%            13%               6.5%

Total          100%                                13.2%

b) The expected return on the portfolio is the addition of the weighted returns from each investment.  The weighted returns are obtained by multiplying the percentage holding of each stock with its expected returns.

You might be interested in
When I was considering what to do with my $10,000 lottery winnings, my broker suggested that I invest half of it in gold, the va
77julia77 [94]

Answer: $20,478.78

Explanation:

In 14 years the investment will be,

Gold

10,000/2 = 5000

Then use the compound interest formula

5000 * (1+0.07)^ 14 = $12,892.67

For Certificates of Deposits.

Use the Compound interest formula

Rate and period are in years. Convert to semi annual basis.

3%/ 2 = 1.5%

14 * 2 = 28 periods

= 5000 ( 1+ 0.015) ^ 28

= $7,586.11

Add both

=$12,892.67 + $7,586.11

= $20,478.78

5 0
3 years ago
Which of the following is true? Question 8 options: The convenience yield is always positive or zero. The convenience yield is a
ss7ja [257]

Answer:

The convenience yield is always positive or zero

Explanation:

the convenience fields measure the benefit of owning an asset rather than having a forward/futures contract on an asset . For an investment asset it is always zero . For a consumption asset it is greater than or equal to zero.

8 0
3 years ago
Ok i have a question: whats your dream jobs or goals in life?
Jet001 [13]

Answer:

I want to become a very accomplished writer, and a dog trainer

6 0
3 years ago
Read 2 more answers
Debt management ratios measure __________.
tankabanditka [31]
Debt management ratios measure how well a company is using debt versus equity position.
8 0
2 years ago
Net income or net loss for a period is calculated by the following formula
V125BC [204]
<span>Revenues–Expenses–Current Debt = Net Profit or Net Loss

</span>
3 0
3 years ago
Read 2 more answers
Other questions:
  • Carla Vista Co. issued $590,000, 10-year, 7% bonds at 101. Prepare the journal entry to record the sale of these bonds on Januar
    9·1 answer
  • Sam has $65 to spend on clothes. he wants to buy a pair of jeans for $29 and spend the rest on t-shirts. each t-shirt costs $9.
    5·1 answer
  • In today's business environment, firms that truly focus on customers must instill a corporate culture that places customers and
    13·1 answer
  • The pursuit of an activity for an outcome that is separate from the person is called
    6·1 answer
  • CopperCore Inc., a U.S. business, took a 31 percent equity interest in Javier Holdings, a family business based in Spain. Accord
    5·1 answer
  • ABC Medical Technology, a fast-growing global research firm, has accumulated so much client information that conventional databa
    5·1 answer
  • David wants to open a new gymnasium with state-of-the-art equipment and qualified trainers. However, he can only afford either o
    14·1 answer
  • The price of one nation's currency expressed in terms of another nation's currency is called
    7·1 answer
  • The profit earned from the sale of stock that has increased in value is known as
    15·2 answers
  • For a specific investment in equity securities, use of the equity method tends to produce ____ financial statement results than
    6·1 answer
Add answer
Login
Not registered? Fast signup
Signup
Login Signup
Ask question!