Consider the following information: a. What is the expected return on an equally weighted portfolio of these
Question:
Consider the following information:
a. What is the expected return on an equally weighted portfolio of these three stocks?
b. What is the variance of a portfolio invested 20 percent each in A and B and 60 percent in C?
Transcribed Image Text:
State of Economy Boom Bust Probability of State of Economy .75 .25 Rate of Retur if State Occurs Stock A Stock B Stock C .07 .12 .18 -.08 .27 -.21
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 80% (10 reviews)
a To find the expected return of the portfolio we need to find the return of the portfolio in each s...View the full answer
Answered By
Ashington Waweru
I am a lecturer, research writer and also a qualified financial analyst and accountant. I am qualified and articulate in many disciplines including English, Accounting, Finance, Quantitative spreadsheet analysis, Economics, and Statistics. I am an expert with sixteen years of experience in online industry-related work. I have a master's in business administration and a bachelor’s degree in education, accounting, and economics options.
I am a writer and proofreading expert with sixteen years of experience in online writing, proofreading, and text editing. I have vast knowledge and experience in writing techniques and styles such as APA, ASA, MLA, Chicago, Turabian, IEEE, and many others.
I am also an online blogger and research writer with sixteen years of writing and proofreading articles and reports. I have written many scripts and articles for blogs, and I also specialize in search engine
I have sixteen years of experience in Excel data entry, Excel data analysis, R-studio quantitative analysis, SPSS quantitative analysis, research writing, and proofreading articles and reports. I will deliver the highest quality online and offline Excel, R, SPSS, and other spreadsheet solutions within your operational deadlines. I have also compiled many original Excel quantitative and text spreadsheets which solve client’s problems in my research writing career.
I have extensive enterprise resource planning accounting, financial modeling, financial reporting, and company analysis: customer relationship management, enterprise resource planning, financial accounting projects, and corporate finance.
I am articulate in psychology, engineering, nursing, counseling, project management, accounting, finance, quantitative spreadsheet analysis, statistical and economic analysis, among many other industry fields and academic disciplines. I work to solve problems and provide accurate and credible solutions and research reports in all industries in the global economy.
I have taught and conducted masters and Ph.D. thesis research for specialists in Quantitative finance, Financial Accounting, Actuarial science, Macroeconomics, Microeconomics, Risk Management, Managerial Economics, Engineering Economics, Financial economics, Taxation and many other disciplines including water engineering, psychology, e-commerce, mechanical engineering, leadership and many others.
I have developed many courses on online websites like Teachable and Thinkific. I also developed an accounting reporting automation software project for Utafiti sacco located at ILRI Uthiru Kenya when I was working there in year 2001.
I am a mature, self-motivated worker who delivers high-quality, on-time reports which solve client’s problems accurately.
I have written many academic and professional industry research papers and tutored many clients from college to university undergraduate, master's and Ph.D. students, and corporate professionals. I anticipate your hiring me.
I know I will deliver the highest quality work you will find anywhere to award me your project work. Please note that I am looking for a long-term work relationship with you. I look forward to you delivering the best service to you.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Corporate Finance
ISBN: 9781260772388
13th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe
Question Posted:
Students also viewed these Business questions
-
Consider the following information: a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 20 percent each in A and B...
-
Consider the following information: a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 20 percent each in A and B...
-
Consider the following information: a. What is the expected return on an equally weighted portfolio of these three stocks? b. What is the variance of a portfolio invested 20 percent each in A and B...
-
Beck Manufacturing reports the following information in T-account form for 2019. The following data is provided for Garcon Company and Pepper Company. Garcon Company Pepper Company Beginning finished...
-
Suppose that the specifications require that the surface area must be between 0.3 and 0.6 cm2/g and that the density must be less than 14 g/cm3. Find a set of operating conditions that will result in...
-
The following calendar-year information is taken from the December 31, 2009, adjusted trial balance and other records of Dahlia Company. Advertising expense . . . . . . . . . . . . . . . . . . . . ....
-
After operating for a month, Shawn Andrews dental practice completed the following transactions during July: Using the steps outlined in the five-step transaction analysis, record the transactions in...
-
Southern Sporting Goods Company makes basketballs and footballs. Each product is produced from two resourcesrubber and leather. The resource requirements for each product and the total resources...
-
Determine the amount of cost-sharing that must be paid by the patient in the scenario below. Ava received a service on January 1st, and the bill was $900. She has a deductible of $1,000 and a...
-
Mcleavey Manufacturing has a demand for 1,000 pumps each year. The company outsources her production by ordering outside supplier, unit purchase price is 60$/ unit. Mc Leavey Manufacturing has to...
-
Four years ago, Bling Diamond, Inc., paid a dividend of $1.95 per share. The company paid a dividend of $2.75 per share yesterday. Dividends will grow over the next five years at the same rate they...
-
Mercury Satellite Corporation earned $25 million for the fiscal year ending yesterday. The firms policy is to pay out 40 percent of its earnings as dividends. The remaining 60 percent of earnings is...
-
There are several determinants of aggregate supply that can cause the aggregate supply curve to shift. a. Describe those determinants and give an example of a change in each. b. Draw and label an...
-
Suppose that, in order to protect Ronaldo from his adoring fans, soccer teams that host Real Madrid must hire extra security, and security costs go up as the number of fans at the game goes up. When...
-
N.B. Vargaftik 3 (1975) lists the experimental values in the following table for the enthalpy departure of isobutane at 175C. Compute theoretical values and their percent deviations from experiment...
-
Suppose the can segment their fans into young fans and senior citizens. Young fans have the demand curve 120 10G (MR = 120 20G). Senior citizens have the demand curve p = 60 10G (MR = 60 20G)....
-
Recent research in thermodynamic perturbation theory suggests the following equation of state. (a) Derive the departure function for (A A ig ) T,V . (b) Derive the departure function for (U U ig )....
-
Within the context of a group design project, meet to discuss and plan task differentiation. When the plan is complete, answer the following questions: a. What happens if one of the group members...
-
A spinning flywheel has rotational inertia I = 400.0 kgm2. Its angular velocity decreases from 20.0 rad/s to zero in 300.0 s due to friction. What is the frictional torque acting?
-
Problem 3.5 (4 points). We will prove, in steps, that rank (L) = rank(LT) for any LE Rnxm (a) Prove that rank (L) = rank (LTL). (Hint: use Problem 3.4.) (b) Use part (a) to deduce that that rank(L) =...
-
Why would TMCC be willing to accept such a small amount today ($24,099) in exchange for a promise to repay about four times that amount ($100,000) in the future?
-
Would you be willing to pay $24,099 today in exchange for $100,000 in 30 years? What would be the key considerations in answering yes or no? Would your answer depend on who is making the promise to...
-
Would you be willing to pay $24,099 today in exchange for $100,000 in 30 years? What would be the key considerations in answering yes or no? Would your answer depend on who is making the promise to...
-
A firm has 36.30 million shares of common stock outstanding at a price of $32.81 per share. The firm also has 492000.00 bonds outstanding with a current price of $1,089.00. The outstanding bonds have...
-
Commwest Bank owns $300 million of variable-rate notes yielding BBR plus 4 per cent. These loans are financed by $300 million of fixed-rate bonds costing 5 per cent.Northside Building Societyhas $300...
-
Mr. Smith enters into the long position in 5 S&P 500 futures contracts. His brokerage account requires an initial margin balance equal to 15% of the notional amount and a maintenance margin equal to...
Study smarter with the SolutionInn App