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irakobra [83]
3 years ago
15

A portfolio consists of $13,400 in Stock M and $18,900 invested in Stock N. The expected return on these stocks is 8.50 percent

and 11.60 percent, respectively. What is the expected return on the portfolio?
Business
1 answer:
Aneli [31]3 years ago
3 0

Answer:

The expected return on the portfolio is:

10.31% ($3,331.40)

Explanation:

a) Data and Calculations:

Portfolio investments:  Expected Returns %   Expected Returns $

Stock M = $13,400           8.50%                           $1,139

Stock N = $18,900          11.60%                           $2,192.40

Total        $32,300          10.31%                           $3,331.40

Total expected returns in percentage is Expected Returns $/Total Investments * 100

= $3,331.40/$32,300 * 100

= 10.31%

b) The expected returns on the portfolio is derived by calculating the expected returns for each investment and summing up.  Then dividing the expected portfolio returns by the portfolio investment.  This yields 10.31% percentage value.

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Bassett Fruit Farm expects its EBIT to be $373,000 a year forever. Currently, the firm has no debt. The cost of equity is 13.2 p
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Answer:

The correct answer is $1,836,742.42.

Explanation:

According to the scenario, the given data are as follows:

EBIT = $373,000

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So, we can calculate the unlevered value of the firm by using following formula:

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3 years ago
The index weighting that results in portfolio weights shifting away from securities that have increased in relative value toward
Sliva [168]

Answer: B. Fundamental weighting.

Explanation:

A fundamentally weighted index refers to a type of equity index whereby the components that are chosen based on the fundamental criteria like the dividend rates, book value, revenue, dividend rates, etc.

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Frankfort Corporation purchases an investment in Bradley, Inc. at a purchase price of $9.8 million cash, representing 40% (at bo
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Answer:

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Option B

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