Rebecca invested $9,000 in a stock that has an expected return equal to 18 percent and $21,000
Question:
Rebecca invested $9,000 in a stock that has an expected return equal to 18 percent and $21,000 in a stock with an 8 percent expected return. What is the portfolio’s 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...
Fantastic news! We've Found the answer you've been seeking!
Step by Step Answer:
Answer rating: 55% (9 reviews)
9000 invested in one stock with an 18 ...View the full answer
Answered By
JAPHETH KOGEI
Hi there. I'm here to assist you to score the highest marks on your assignments and homework. My areas of specialisation are:
Auditing, Financial Accounting, Macroeconomics, Monetary-economics, Business-administration, Advanced-accounting, Corporate Finance, Professional-accounting-ethics, Corporate governance, Financial-risk-analysis, Financial-budgeting, Corporate-social-responsibility, Statistics, Business management, logic, Critical thinking,
So, I look forward to helping you solve your academic problem.
I enjoy teaching and tutoring university and high school students. During my free time, I also read books on motivation, leadership, comedy, emotional intelligence, critical thinking, nature, human nature, innovation, persuasion, performance, negotiations, goals, power, time management, wealth, debates, sales, and finance. Additionally, I am a panellist on an FM radio program on Sunday mornings where we discuss current affairs.
I travel three times a year either to the USA, Europe and around Africa.
As a university student in the USA, I enjoyed interacting with people from different cultures and ethnic groups. Together with friends, we travelled widely in the USA and in Europe (UK, France, Denmark, Germany, Turkey, etc).
So, I look forward to tutoring you. I believe that it will be exciting to meet them.
3.00+
2+ Reviews
10+ Question Solved
Related Book For
Question Posted:
Students also viewed these Business questions
-
You are considering investing in a stock that has an expected return of 13 percent. If the risk-free rate is 5 percent and the market risk premium is 7 percent, what must the beta of this stock be?
-
Susan's investment portfolio currently contains three stocks that have a total value equal to $100,000. The beta of this portfolio is 1.5. Susan is considering investing an additional $50,000 in a...
-
The risk-free rate, KRF, is 6 percent and the market risk premium, (KM - KRF), is 5 percent. Assume that required returns are based on the CAPM. Your $1 million portfolio consists of $700,000...
-
The owner of Atlantic City Confectionary is considering the purchase of a new semiautomatic candy machine. The machine will cost $25,000 and last 10 years. The machine is expected to have no salvage...
-
Why do quantitative and qualitative analyses often require different monochromator slit widths?
-
Distinguish between set representations that are implicit and those that are explicit.
-
In an investigation of the travel costs of college students, which of the following does not belong: center; variation; distribution; bar graph; outliers; changing patterns over time?
-
Income statement information for 2011 for Pug Corporation and its 60 percent-owned subsidiary, Sev Corporation, is as follows: Intercompany sales for 2011 are upstream (from Sev to Pug) and total...
-
Deere and CNH Global compete against each other as manufacturers in the global market for agricultural and construction equipment. Both companies operate finance subsidiaries in order to extend...
-
An Evaluation of the Dilemma at Benevento Foods: Understanding Cause and Effect and Recommendations for Improvement For this Assignment, you will continue to evaluate the same scenario from the...
-
Which of the following investments has the greater relative risk? Investment Expected Return, Standard Deviation, o 16.0% 7.0% 27.0 13.0
-
What is the expected return of the following portfolio of investments, r? p : Amount Invested Investment 4% DEF $30,000 25,000 45,000 JKL TUV 24 14
-
A park merry-go-round consists of a 240-kg circular wooden platform 4.00 m in diameter. Four children running alongside push tangentially along the platforms circumference until, starting from rest,...
-
An investor is planning on selling some property that she recently purchased. A real estate consulting firm determines that there is a 50% chance of making a profit of $50,000, a 30% chance of...
-
Consider two points P = (-1,-4) and Q = (5,4). a. Determine the distance between P and Q. b. Determine the midpoint of a line segment connecting P and Q. 2. (2 points) Suppose the variable x can be...
-
Data on Shin Inc for last year are shown below, along with the inventory conversion period (ICP) of the firms against which it benchmarks. The firm's new CFO believes that the company could reduce...
-
Petrolyn motor oil is a combination of natural oil and synthetic oil. It contains 3 liters of natural oil for every 2 liters of synthetic oil. In order to make 275 liters of Petrolyn oil, how many...
-
Sandra own a house whose imputed rental value is $20,000 per year. Amanda on the other hand rents a house and pays a rent of $24,000 per annum. What values will be included in GDP?
-
Jack and Jill are owners of UpAHill, an S corporation. They own 25 and 75 percent, respectively. a. What amount of ordinary income and separately stated items are allocated to them for years 1 and 2...
-
In exchange for land, the company received a 12-month note on January 1. The face amount of the note is $1,000, and the stated rate of interest is 13%, compounded annually. The 13% rate is equal to...
-
The treasurer of Riley Coal Co. is asked to compute the cost of fixed income securities for her corporation. Even before making the calculations, she assumes the aftertax cost of debt is at least 3...
-
Murray Motor Company wants you to calculate its cost of common stock . During the next 12 months, the company expects to pay dividends (D1) of $2.50 per share, and the current price of its common...
-
Compute Ke and Kn under the following circumstances: a. D1 = $5.00, P0 = $70, g = 8%, F = $7.00. b. D1 = $0.22, P0 = $28, g = 7%, F = $2.50. c. E1 (earnings at the end of period one) = $7, payout...
-
Jason owns an office complex in Tucson, Arizona. One day, the air conditioning unit is not functioning and he has to hire a maintenance crew to fix it for $2,000. May Jason deduct this as a business...
-
Russel Industries has just completed construction of an oil drilling facility at a cost of $10 million. The facility has a useful life of 10 years, is expected to have a $1 million residual value,...
-
3. The Alice Company has estimated costs for the following monthly production levels: Production volume (units) Cost A Cost B Cost C Cost D Cost E Cost F Cost G Cost H Total manufacturing costs...
Study smarter with the SolutionInn App