HomeworkLib
Question

12. What is the return on a portfolio containing the stocks below? (10) Stock Shares Po P 10 12 300 20 25 500 Y
business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Value of portfolio at time 0 = Nx*Px0 + Ny*Py0 = 500*10 + 300*20 = 11000

Value of portfolio at time 1 = Nx*Px1 + Ny*Py1 = 500*12 + 300*25 = 13500

Return on portfolio = (Value at time 1 - value at time 0)/value at time 0 = (13500-11000)/11000 = 22.73%

0 0
Add a comment
Know the answer?
Add Answer to:
12. What is the return on a portfolio containing the stocks below? (10) Stock Shares Po...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for? Ask your own homework help question. Our experts will answer your question WITHIN MINUTES for Free.
Similar Homework Help Questions

  • Consider a portfolio that contains two stocks. Stock "A" has an expected return of 10% and...

    Consider a portfolio that contains two stocks. Stock "A" has an expected return of 10% and a standard deviation of 20%. Stock "B" has an expected return of -10% and a standard deviation of 25%. The proportion of your wealth invested in stock "A" is 60%. The correlation between the two stocks is 0. What is the expected return of the portfolio? Enter your answer as a percentage. Do not include the percentage sign in your answer. Enter your response...

  • A portfolio consists of three stocks. There are 540 shares of Stock A valued at $24.20...

    A portfolio consists of three stocks. There are 540 shares of Stock A valued at $24.20 share. 300 shares of Stock B valued at $48.10 a share, and 200 shares of Stock C priced at $26.50 a share. Stocks A, B, and C are expected to return 8.3 percent 16.4 percent, and 11.7 percent, respectively. What is the expected return on this portfolio? Does the return look good or not for an aggressive investor?

  • A portfolio consists of 200 shares of Stock A, 300 shares of Stock B, 500 shares...

    A portfolio consists of 200 shares of Stock A, 300 shares of Stock B, 500 shares of Stock C, and 700 shares of Stock D. The prices of these stocks are $19, $36, $21, and $15 for Stocks A through D, respectively. What is the portfolio weight of Stock C?

  • Based on the scenarios below, what is the expected return for a portfolio with the following...

    Based on the scenarios below, what is the expected return for a portfolio with the following return profile? Market Condition Bear Normal Bull Probability .2 .3 .5 Rate of return -25% 10% 24% Use the following scenario analysis for Stocks X and Y to answer CFA Problems 3 through 6 (round to the nearest percent). Bear Market Normal Market Bull Market Probability 0.2 0.5 0.3 Stock X -20% 18% 50% Stock Y -15% 20% 10% 3. What are the expected...

  • Portfolio return and standard deviation Jamie Wong is thinking of building an investment portfolio containing two...

    Portfolio return and standard deviation Jamie Wong is thinking of building an investment portfolio containing two stocks, L and M. Stock L will represent 40% of the dollar value of the portfolio, and stock M will account for the other 60%. The historical returns over the last 6 years, 2013-2018, for each of these stocks are shown in the following table. P8-13 Expected return Year Stock L Stock M 2013 2014 2015 2016 2017 2018 14% 14 16 17 17...

  • You own a portfolio that is invested 35% in Stock X, 20% in Stock Y, and 45% in Stock Z. The expected returns on these stocks are 8% and 11%, respectively, what is the expected return on the portfolio ?

    You own a portfolio that is invested 35% in Stock X, 20% in Stock Y, and 45% in Stock Z. The expected returns on these stocks are 8% and 11%, respectively, what is the expected return on the portfolio ?

  • Stocks A and B each have an expected return of 12%, a beta of 1.2, and...

    Stocks A and B each have an expected return of 12%, a beta of 1.2, and a standard deviation of 25%. The returns on the two stocks have a correlation of 0.6. Portfolio P has 50% in Stock A and 50% in Stock B. Which of the following statements is CORRECT? Portfolio P has a beta that is greater than 1.2. Portfolio P has a standard deviation that is greater than 25%. Portfolio P has an expected return that is...

  • Three-stock Portfolio The information regarding a portfolio consisting of three stocks is given below. Stock A...

    Three-stock Portfolio The information regarding a portfolio consisting of three stocks is given below. Stock A Stock B Stock C E(R) 15% 21% Standard Deviation 10% 30% Weight 0.30 0.30 17% 14% 0.40 The correlation coefficient between Stocks A and B is 0.27. The correlation coefficient between Stocks A and C is 0.67. The correlation coefficient between Stocks B and C is 0.12. What is the expected return of the portfolio? Select one: o a. 12.54% b. 10.68% c. 17.60%...

  • 19. You own the following portfolio of stocks. What is the portfolio weight of stock C?...

    19. You own the following portfolio of stocks. What is the portfolio weight of stock C? Number Stock of Shares 500 200 600 100 Price per Share $14 $23 $18 $47 A. 39.85 percent B. 42.86 percent C. 44.41 percent D. 48.09 percent E. 52.65 percent 20. What is the variance of the returns on a portfolio that is invested 60 percent in stock S and 40 percent in stock T? State of Economy Boom Normal Probability of State of...

  • You are given the information on three stocks. Stock Expected Return Number of Shares Stock Price...

    You are given the information on three stocks. Stock Expected Return Number of Shares Stock Price Beta A 9% 750 $33 1.5 B 14% 220 $51 1.2 C 12% 460 $19 0.95 Suppose you borrow 70% of your funds at 6% interest rate and invest the borrowed funds as well as the funds you already have in the portfolio incorporating the three stocks. What is the expected return on this portfolio? a.   12.914% b.   14.228 c.   16.65% d.   10.80% e.  ...

ADVERTISEMENT
Free Homework Help App
Download From Google Play
Scan Your Homework
to Get Instant Free Answers
Need Online Homework Help?
Ask a Question
Get Answers For Free
Most questions answered within 3 hours.
ADVERTISEMENT
ADVERTISEMENT