Stocks have a 12% expected return and 22% risk. Bonds have a 7% expected return and 10%

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

Question:

Stocks have a 12% expected return and 22% risk.

Bonds have a 7% expected return and 10% risk.

The expected return of a portfolio comprised of 70% stock and 30% bond is?

Related Book For answer-question

Income Tax Fundamentals 2013

ISBN: 9781285586618

31st Edition

Authors: Gerald E. Whittenburg, Martha Altus Buller, Steven L Gill

See More Books

Posted Date: May 13, 2023 04:46 AM

See More Questions

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...
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...
Alpha LLC, a US hedge fund, considers investing in both bonds and stocks inSingapore market. Two straight bonds and two SGX stocks are shortlisted by AlphaLLC. Bond P has a par value of $1,000,...
Cungs Dress Delivery operates a mail-order business that sells clothes designed for frequent travelers. It had sales of $610,000 in December. Because Cungs Dress Delivery is in the mail order...
You have many 2.0F capacitors, each capable of withstanding 200 V without undergoing electrical breakdown (in which they conduct charge instead of storing it). How would you assemble a combination...
Free end a. Bending moment $=0$; shear force equals the b. Deflection $=0$; slope $=0$ c. Deflection $=0$; bending moment $=0$ d. Bending moment $=0$; shear force $=0$
To compute the test statistic for a test with matched pairs, we must compute the standard deviations of the samples. In Exercises 5 and 6, determine whether the statement is true or false. If the...
Comparative balance sheets for 2013 and 2012, a statement of income for 2013, and additional information from the accounting records of Red, Inc., are provided below. Additional information from the...
Let (t) = (2+2 + 1, 3e*, -2 sin(3t)) Find the unit tangent vector T (t) at the point t = 0 T(0) = = < >
Identify some differences between business organizations and government/not-for-profit organizations.
An auditor is performing a test of controls over the completeness of sales transactions for a company. The auditor selects a sample of 100 sales invoices and finds that 5 invoices are missing a...
Is the following class immutable?} import java.util.Date; public class Appointment { } private Date date; private String contact; public Appointment (Date date) { this.date date; this. contact =...
What does the following recursive function return? public static String mystery (String s) { } int n = s.length(); if (n = 1) return s; String a s.substring(0, n/2); = String b s.substring(n/2, n);...
List three features of a balance sheet format which are particularly useful in making the format helpful to readers.
Add a toString() method to Vector that returns the vector components, separated by commas, and enclosed in matching parentheses.
Suppose you want to add a constructor to Comp1ex that takes a double value as its argument and creates a Comp1ex number with that value as the real part (and no imaginary part). You write the...
A short cast-iron column of rectangular section of 50x30 mm carries a load of F kN as shown below. Calculate the greatest value of F if the maximum tensile stress is limited to 15 MNm (Answer: 2.8...
Draw the major product for each of the following reactions: (a) (b) (c) 1) 9-BBN 2) H2O2, NaOH 1) Disiamylborane 2) H20, NaOH
The following additional information is available for the Dr. Ivan and Irene Incisor family from Chapters 1-6. On December 12, Irene purchased the building where her store is located. She paid...
Indicate, in each of the following situations, the number of exemptions the taxpayers are entitled to claim on their 2012 income tax returns. Number of Exemptions a. Donna, a 20-year-old single...
In 2012, Margaret and John Murphy are married taxpayers who file a joint tax return with AGl of $25,000. During the year they incurred the following expenses: Hospitalization insurance...
Describe how to determine the $x$ component of the position of an object at a specific instant, given (a) a graph of position $x$ as a function of time $t$ and (b) an equation for $x(t)$.
In an $x(t)$ curve, what is the significance of a steep slope as opposed to a gentle slope? What is the significance of a curve that slopes downward as you move from left to right along the time...
The $x$ component of a car's velocity increases from 0 to $+5.0 \mathrm{~m} / \mathrm{s}$ in $1.0 \mathrm{~s}$, and then from $+5.0 \mathrm{~m} / \mathrm{s}$ to \(+10 \mathrm{~m} /...

Stocks have a 12% expected return and 22% risk. Bonds have a 7% expected return and 10%

Question:

Expert Answer:

ANSWER Solution i Expected return stock Ers 12 ii Exp... View the full answer

Income Tax Fundamentals 2013

Students also viewed these finance questions