If you invest 30% of your portfolio in an investment with an expected return of 25% and

Fantastic news! We've Found the answer you've been seeking!

Question:

If you invest 30% of your portfolio in an investment with an expected return of 25% and 70% of your portfolio in an investment with an expected return of 10%.

What is the expected return of your portfolio?

Related Book For answer-question

Contemporary Financial Management

ISBN: 9780324289114

10th Edition

Authors: James R Mcguigan, R Charles Moyer, William J Kretlow

See More Books

Posted Date: May 05, 2023 02:52 AM

See More Questions

The stock of Koch Brickyard, Inc., is expected to return 14 percent with a standard deviation of 5 percent. Uptown Potbelly Stove Works stock is expected to return 16 percent with a standard...
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...
You have been bequeathed a legacy of £100,000 and you are considering placing the entire funds either in shares of company A or in shares in company B. When you told your stock broker about...
Instructions for the Partnership Exercise: Your assignment is to correct a defective three person partnership agreement. You need to name at least three partners in your partnership agreement. If you...
An intangible asset with an estimated useful life of 30 years was acquired on January 1, 2000, for $540,000. On January 1, 2010, a review was made of intangible assets and their expected service...
Using the data in Exercise 28: a. Compute the cumulative frequencies for the classes in the American League frequency distribution. b. Construct a frequency ogive for the American League frequency...
Recall, venue is the geographic district where a case can properly be heard. Find the venue for the California state court where your paralegal school or residence is located.
Network Technologies manufactures capacitors for cellular base stations and other communication applications. The companys July 2014 flexible budget shows output levels of 7,000, 8,500, and 10,500...
A bond with 10 years to maturity has a face value of $1000 with $40 annual coupon. Today bond's price is $1025. a)What's its coupon rate? b)What's its current yield? You are evaluating two bonds to...
In recent years, Kannada Company purchased three machines. Because of heavy turnover in the accounting department, a different accountant was in charge of selecting the depreciation method for each...
Instructions: Building the ICD-10-PCS code requires getting to the correct code table and assigning values for the body part, approach, and if applicable device and qualifier. Use the following...
Explain and analyze how social entrepreneurship helps the development of a society. Justify your answer using theoretical approaches mentioned in the lesson, as well as real examples.
Assume that today is January 1,2017. The rate of inflation is expected to be 4% throughout 2013. However, increased government deficits and renewed vigor in the economy are then expected to push...
What are the typical measurements included in the statistics of a workplace wellness program?
Why is a good succession management plan important in today's workplace?
Compare and contrast between formula method, equal pay method and pay for performance methods of compensation ?
1) Use a for loop to print the odd numbers from 1 to 19 on the screen 2) Use a while loop to print numbers 1 to 35 on the screen 3) Use a do-while loop to print numbers 1 to 29 on the screen 4) Use a...
Show that every group G with identity e and such that x * x = e for all x G is abelian.
Describe two techniques that a company can use to hedge against transaction exchange risk.
High Sky, Inc., a hot-air balloon manufacturing firm, currently has the following simplified balance sheet: The company is planning an expansion that is expected to cost $600,000. The expansion can...
The expected return and standard deviation of returns of General Mills common stock over the next year are estimated to be 20 percent and 12 percent, respectively. Assume that the returns are...
United Technologies Corporation (UTC), based in Hartford, Connecticut, owns a wide variety of companies that operate in different businesses and industries. Some of the companies in UTCs portfolio...
How does the auditors professional duty of confidence affect disclosures to third parties?
When can auditors disclose unlawful acts to the police?

If you invest 30% of your portfolio in an investment with an expected return of 25% and

Question:

Expert Answer:

To find the expected return of the portfolio we need to take a weighted average ... View the full answer

Contemporary Financial Management

Students also viewed these accounting questions