HomeworkLib
Question

You own a portfolio that is invested 30 percent in stock A, 45 percent in stock...

You own a portfolio that is invested 30 percent in stock A, 45 percent in stock B, and the remainder in stock C. The expected returns on these stocks are 15.31 percent, 17.9 percent, and 13.82 percent, respectively. What is the expected return on the portfolio?

18.26% 14.97% 15.30% 16.10%

business   finance   
0 0
Add a comment Improve this question Transcribed image text
Next > < Previous
Sort answers by oldest

Homework Answers

Answer #1

Expected return on the portfolio= 0.30*15.31% + 0.45*17.9% + 0.25*13.82%

                                                              = 4.5930% + 8.0550% + 3.4550%

                                                              = 16.10% .

Hence, the answer is option d.

In case of any query, kindly comment on the solution.

0 0
Add a comment
Know the answer?
Add Answer to:
You own a portfolio that is invested 30 percent in stock A, 45 percent in stock...
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

  • You own a portfolio that is 25 percent invested in Stock X, 30 percent invested in...

    You own a portfolio that is 25 percent invested in Stock X, 30 percent invested in Stock Y, and 45 percent invested in Stock Z. The expected returns of the three stocks are 11 percent, 18 percent, and 6 percent, respectively. What is the expected return of the portfolio? A. 11.67 percent B. 10.85 percent C. 17.11 percent D. 8.64 percent

  • 1. 2. You own a stock portfolio invested 25 percent in Stock Q, 20 percent in...

    1. 2. You own a stock portfolio invested 25 percent in Stock Q, 20 percent in Stock R, 10 percent in Stock S, and 45 percent in Stock T. The betas for these four stocks are 1.2, 1.51, 1.66, and 0.46, respectively. What is the portfolio beta? You own a portfolio that has $1,900 invested in Stock A and $4,000 invested in Stock B. If the expected returns on these stocks are 13 percent and 15 percent, respectively, what is...

  • please show work 4) You own a portfolio that is invested 35 percent in Stock A,...

    please show work 4) You own a portfolio that is invested 35 percent in Stock A, 20 percent in Stock B, and the remainder in Stock C. The expected returns on stocks A, B, and Care 9.1 percent, 17.1 percent, and 12.1 percent, respectively. What is the expected return on the portfolio?

  • You own a portfolio that has $2,300 invested in Stock A and $3,300 invested in Stock...

    You own a portfolio that has $2,300 invested in Stock A and $3,300 invested in Stock B. If the expected returns on these stocks are 8 percent and 11 percent, respectively, what is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Portfolio expected return You own a portfolio that is 35 percent invested in Stock X, 20 percent in Stock Y, and 45...

  • 3. Portfolio Expected Return (L01) You own a portfolio that is 35 percent invested in Stock...

    3. Portfolio Expected Return (L01) You own a portfolio that is 35 percent invested in Stock X. 20 percent in Stock Y, and 45 percent in Stock Z. The expected returns on these three stocks are 9 percent, 17 percent, and 13 percent, respectively. What is the expected return on the portfolio?

  • you own a portfolio that is invested 25 percent in stock A, 40 percent in stock...

    you own a portfolio that is invested 25 percent in stock A, 40 percent in stock B, and the reminder in stock C. the expected returns on stocks are 8 percent, 16 percent, and 5 percent respectively. what is the expected return on the portfolio? a. 8.28% b. 10.15% c. 12.39% d. 13.14% e. 14.58%

  • You own a portfolio that is 20 percent invested in Stock X, 30 percent in Stock...

    You own a portfolio that is 20 percent invested in Stock X, 30 percent in Stock Y, and 50 percent in Stock Z. The expected returns on these three stocks are 10 percent, 14 percent, and 9 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) 11.00% 9.40% 13.20% 10.70% 12.60%

  • You own a portfolio that has $2709 invested in Stock A and $4387 invested in Stock...

    You own a portfolio that has $2709 invested in Stock A and $4387 invested in Stock B. If the expected returns on these stocks are 12 percent and 20 percent, respectively, what is the expected return (in percent) on the portfolio?

  • You own a portfolio that has $2848 invested in Stock A and $3385 invested in Stock...

    You own a portfolio that has $2848 invested in Stock A and $3385 invested in Stock B. If the expected returns on these stocks are 11 percent and 17 percent, respectively, what is the expected return (in percent) on the portfolio?

  • You own a portfolio that has $2,100 invested in Stock A and $3,650 invested in Stock...

    You own a portfolio that has $2,100 invested in Stock A and $3,650 invested in Stock B. If the expected returns on these stocks are 8 percent and 15 percent, respectively, what is the expected return on the portfolio?

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