# Question: Consider the following information a Your portfolio is invested 20

Consider the following information:

(a) Your portfolio is invested 20 percent each in B and C and 60 percent in A. what is the portfolio’s expected return?

(b) What is the various of this portfolio? The standarddeviation?

(a) Your portfolio is invested 20 percent each in B and C and 60 percent in A. what is the portfolio’s expected return?

(b) What is the various of this portfolio? The standarddeviation?

## Answer to relevant Questions

Stock J has a beta of 1.35 and an expected return of 17 percent, while stock K has a beta of .80 and an expected return of 10 percent. You want a portfolio with the same risk as the market. How much you invest in each stock? ...You have $100,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 18.5 percent. If Stock X has an expected return of 17.2 percent and a beta of 1.4, ...FCOJ, Inc., a prominent consumer products firm, is debating whether or not to convert its all-equity capital structure to one that is 25 percent debt. Currently, there are 5,500 shares outstanding and the price per share is ...Gollum Co. has no debt. Its cost of capital is 9.5 percent. Suppose Gollum coverts to a debt-equity ratio of 1.0. The interest rate on the debt is 7.2 percent. Ignoring taxes, what Gollum’s new cost of equity? What is its ...For the company in Problem 4, show how the equity accounts will change if:a. Trans World declares a two-for-one stock split. How many shares are outstanding now? What is the new par value per share?b. Trans World declares a ...Post your question