You analyze the prospects of several companies and come to the following conclusions about the expected return
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Stock Expected Return
Starbucks................ 18%
Sears.................. 8%
Microsoft................. 16%
Limited Brands......................... 12%
You decide to invest $4,000 in Starbucks, $6,000 in Sears, $12,000 in Microsoft, and $3,000 in Limited Brands. What is the expected return on your portfolio?
Expected Return
The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR). It is calculated by multiplying potential outcomes by the chances of them occurring and then totaling these...
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Related Book For
Introduction to Corporate Finance What Companies Do
ISBN: 978-1111222284
3rd edition
Authors: John Graham, Scott Smart
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