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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.

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3 0
3 years ago
Ecstasy Pharmaceuticals faces fixed costs of $1 million with manufacturing its new drug. The company sells the drug in bottles o
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5 0
4 years ago
It takes one day for Peter Gibbons to complete a TPS report and attach the cover sheet. During that day, Peter spends about 15 m
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Peter's percent value-added time is just over 3%. is the correct statement

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4 years ago
If a U.S.-based automobile parts supplier were to apply a global mind-set to its internal analysis, it would: a. review sales da
Stella [2.4K]

The correct option is, (d) study all of its internal resources with an understanding of which capabilities offer value to meet the needs of U.S., Japanese, European, and Korean automakers.

<h3>What will happen in theory if a company is able to align its strategy and structure?</h3>
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<h3>Which of the following is an example of an intangible company resource?</h3>
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6 0
2 years ago
Ted purchased an annuity today that will pay $1,000 a month for five years. He received his first monthly payment today. Allison
victus00 [196]

Answer:

The correct option is E,Ted's annuity has a higher present value than Allison's

Explanation:

Both annuities do not have equal amount today as $1000 received today is higher in value terms than $1000 receivable in a month's time since cash receivable earlier is much more valued than the one receivable later.

Ted's annuity is an  annuity due not an ordinary annuity

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Allison's annuity has a lower present value than Ted's and not the other way round.

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7 0
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