# Question

Calculate the portfolio weights based on the dollar investments in the table below. Interpret the negative sign on one investment. What is the size of the initial investment on which an investor’s rate of return calculation should be based?

Stock $ Invested

1......... $10,000

2......... –$5,000

3............ $5,000

Stock $ Invested

1......... $10,000

2......... –$5,000

3............ $5,000

## Answer to relevant Questions

Pete Pablo has $20,000 to invest. He is very optimistic about the prospects of two companies, 919 Brands Inc., and Diaries.com. However, Pete has a very pessimistic view of one firm, a financial institution known as Lloyd ...The expected return on the market portfolio equals 12%. The current risk-free rate is 6%. What is the expected return on a stock with a beta of 0.66? You name some industries where the payback period is unavoidably long? Suppose that a 30-year U.S. Treasury bond offers a 4% coupon rate, paid semiannually. The market price of the bond is $1,000, equal to its par value. a. What is the payback period for this bond? b. With such a long payback ...For each of the projects shown in the following table, calculate the internal rate of return (IRR).Post your question

0