The total value of your portfolio consists of approximately 65% stock assets, 25% bonds, and 10% cash
Question:
The total value of your portfolio consists of approximately 65% stock assets, 25% bonds, and 10% cash equivalents. Historical returns have shown that stocks provide a return of 12%, bonds provide a return of 3.5%, and cash savings provide a return of 1.5%. What is the expected value of the return on this portfolio?
Step by Step Answer:
ER 65 x 12 25 x 35 ...View the full answer
Related Video
Stocks (also known as equities) are securities that represent ownership in a company. They are issued by companies to raise capital, and when an individual buys stocks, they become a shareholder in that company. Investing in stocks can be a way for individuals to potentially earn a return on their investment through dividends and capital appreciation. However, investing in stocks also carries a level of risk, as the value of the stock can fluctuate based on various factors such as the financial performance of the company and general market conditions. For companies, issuing stocks can be a way to raise funds for growth and expansion. When a company goes public by issuing an initial public offering (IPO), it can raise significant capital by selling ownership stakes to the public. Companies can also issue additional stock offerings to raise additional capital as needed.
Students also viewed these Business questions
-
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-5. Ivan's grandfather died and left a portfolio of municipal bonds. In 2012, they pay Ivan...
-
Problem #1 you are considering buying 500 shares of gangnam styles common stock. The common stock is expected to pay a dividend of $4.50 a year from today; the growth rate of the dividends is 4%; the...
-
Managing Scope Changes Case Study Scope changes on a project can occur regardless of how well the project is planned or executed. Scope changes can be the result of something that was omitted during...
-
JD is a 25 year old patient who sustained massive head trauma and neurological injury in a motorcycle accident. He is not brain dead, but after 4 weeks in MICU and several neuro consults, the...
-
(a) Suppose H 0 : = o is rejected in favor of H 1 : = o at the = 0.05 level of significance. Would H 0 necessarily be rejected at the = 0.01 level of significance? (b) Suppose H 0 : = o is...
-
You receive a brochure from a large university. The brochure indicates that the mean class size for full-time faculty is fewer than 32 students. You want to test this claim. You randomly select 18...
-
What are the advantages and disadvantages of judgmental sampling?
-
Under the UCC, which party, Golden Years or Star Bank, must bear the loss in this situation? Why? Nancy Mahar was the office manager at Golden Years Nursing Home, Inc. She was given a signature stamp...
-
The table shows the median income level for various age groups, based on the most recent U.S. Census data available. T O Median Income Age group (in years) 21-24 25-34 35-44 $38,145.00 45-54 55-64...
-
How many check bits are needed if the Hamming error correction code is used to detect single bit errors in a 1024-bit data word?
-
The results of a standardized test indicate that you are in the 85th percentile. What is the best interpretation of this result? a. You scored in the top 85% of all students taking the test. b. You...
-
Explain how quartiles can be used to detect outliers in a data set.
-
A random variable X is normally distributed with a mean of 100 and a variance of 100 and a random variable Y is normally distributed with a mean of 200 and a variance of 400. The random variables...
-
in the philippinesm The official residence of the resident citizen was sold for P10,000,000 when its zonal value was P8,000,000. The cost of the property sold was P5,000,000 If eventually, P9,000,000...
-
provide two conditions or scenarios under which mean reversion is not likely in return on equity
-
How does IT impact the cost structure of an organization? Question 64 Select one: a. IT increases the transaction costs of a firm b. IT increases the agency costs of a firm c. IT increases the cost...
-
Exporters or importers can choose any one of the six customs valuation methods to determine the value for duty (VFD) for Customs clearance purpose. The six customs valuation methods are transaction...
-
The lease contains no provisions addressing either Landlord's right to inspect the apartment during the lease or repairs by Tenant
-
Jackson Corporation manufactures one product, Beta, for which it has developed the following standard cost per unit: Direct materials (3 kg. at $4 per kg) ....................................$12.00...
-
Chris Zulliger was a chef at the Plaza Restaurant in the Snowbird Ski Resort in Utah. The restaurant is located at the base of a mountain. As a chef for the Plaza, Zulliger was instructed by his...
-
How do precision agriculture systems support decision making? Identify three different decisions that can be supported.
-
How helpful is precision agriculture to individual farmers and the agricultural industry? Explain your answer.
-
Describe the problem faced by Plan International. What management , organization, and technology factors contributed to this problem?
-
You are going to plant 750 acres in corn. The soil sample calls for 210-45-30 units of fertilizer per acre. You plan to use anhydrous ammonia as your nitrogen source and plan on a fall application of...
-
What strategies can be employed to foster effective communication and collaboration within a diverse team ?
-
Show that the following two systems both have a finite escape time for any value of a and any value of the initial condition specified. (a) x = xa, a > 1, x(0) > 0; (b) x =-xa, a >1 is an even...
Study smarter with the SolutionInn App