# Question

You are considering investing in three stocks with the following expected returns:

Stock A......... 7%

Stock B......... 12

Stock C.......... 20

What is the expected return on the portfolio if an equal amount is in-vested in each stock? What would be the expected return if 50 percent of your funds is invested in stock A and the remaining funds are split evenly between stocks B and C?

Stock A......... 7%

Stock B......... 12

Stock C.......... 20

What is the expected return on the portfolio if an equal amount is in-vested in each stock? What would be the expected return if 50 percent of your funds is invested in stock A and the remaining funds are split evenly between stocks B and C?

## Answer to relevant Questions

A portfolio consists of assets with the following expected returns: Technology stocks........... 20% Pharmaceutical stocks....... 15 Utility stocks........... 10 Savings account........... 5 a. What is the expected return on ...Two stocks, A and B, have beta coefficients of 0.8 and 1.4, respectively. If the expected return on the market is 10 percent and the risk-free rate is 5 percent, what is the risk premium associated with each stock? Assume Lasher’s Kitchen has pretax earnings of $75,000 after depreciation expense of $15,000. If the firm’s tax rate is 35 percent, what is its cash flow from operations? If a firm has the following sources of finance, Current liabilities....... $100,000 Long-term debt....... 350,000 Preferred stock....... 75,000 Common stock....... 225,000 Earns a profit of $35,000 after taxes, and pays ...A firm has the following balance sheet: a. Construct a new balance sheet showing the impact of a three-for-one split. If the current market price of the stock is $54, what is the price after the split? b. Construct a new ...Post your question

0