HomeworkLib
Question

A portfolio is invested 25 percent in Stock G, 60 percent in Stock J, and 15...

A portfolio is invested 25 percent in Stock G, 60 percent in Stock J, and 15 percent in Stock K. The expected returns on these stocks are 11 percent, 15 percent, and 26 percent, respectively. What is the portfolio's expected return?

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

Homework Answers

Answer #1

Portfolio's expected return = Weighted Average Return

Return on stock G = 11%

Return on stock J = 15%

Return on stock K = 26%

Investment in the stocks

Stock G = 25%

Stock J = 60%

Stock K = 15%

Therefore Portfolio's expected return = 0.11 * 0.25 + 0.15 * 0.60 + 0.26 * 0.15

= 0.0275 + 0.09 + 0.039

= 0.1565

or 15.65%

Portfolio's expected return = 15.65%

0 0
Add a comment
Know the answer?
Add Answer to:
A portfolio is invested 25 percent in Stock G, 60 percent in Stock J, and 15...
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

  • A portfolio is invested 25 percent in Stock G, 60 percent in Stock J, and 15...

    A portfolio is invested 25 percent in Stock G, 60 percent in Stock J, and 15 percent in Stock K. The expected returns on these stocks are 11 percent, 21 percent, and 22 percent, respectively. What is the portfolio's expected return?

  • A portfolio is invested 15 percent in Stock G, 60 percent in Stock J, and 25...

    A portfolio is invested 15 percent in Stock G, 60 percent in Stock J, and 25 percent in Stock K. The expected returns on these stocks are 12 percent, 18 percent, and 23 percent, respectively. What is the portfolio's expected return? Multiple Choice 19.27% 19.08% 14.13% 18.35% 17.43%

  • A portfolio is invested 20 percent in Stock G, 27 percent in Stock J, with remainder...

    A portfolio is invested 20 percent in Stock G, 27 percent in Stock J, with remainder in Stock K. The expected returns on these stocks are 9.45 percent, 13.83 percent, and 17.89 percent, respectively. What is the portfolio's expected return?  Answer to two decimals. Thank you!!

  • Calculating Expected Returns A portfolio is invested 20 percent in Stock G, 35 percent in Stock...

    Calculating Expected Returns A portfolio is invested 20 percent in Stock G, 35 percent in Stock J, and 45 percent in Stock K. The expected returns on these stocks are 9.6 percent, 10.9 percent, and 14.3 percent, respectively. What is the portfolio's expected return? How do you interpret your answer?

  • QUESTION 1: QUESTION 2: A portfolio is invested 10 percent in Stock G, 50 percent in...

    QUESTION 1: QUESTION 2: A portfolio is invested 10 percent in Stock G, 50 percent in Stock J, and 40 percent in Stock K. The expected returns on these stocks are 9 percent, 15 percent, and 19 percent, respectively. What is the portfolio's expected return? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return You own a stock portfolio invested 30 percent in Stock Q, 25 percent in Stock...

  • 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...

  • You own a portfolio that is 25 percent invested in Stock X, 35 percent in Stock...

    You own a portfolio that is 25 percent invested in Stock X, 35 percent in Stock Y, and 40 percent in Stock Z. The expected returns on these three stocks are 10 percent, 13 percent, and 15 percent, respectively. What is the expected return on the portfolio? PART A: is this a systematic risk or a unsystematic risk

  • Calculating Portfolio Betas You own a stock portfolio invested 15 percent in Stock Q, 25 percent...

    Calculating Portfolio Betas You own a stock portfolio invested 15 percent in Stock Q, 25 percent in Stock R, 40 percent in Stock S, and 20 percent in Stock T. The betas for these four stocks are . 78, 87, 1.13, and 1.45, respectively. What is the portfolio beta? Calculating Portfolio Betas You own a portfolio equally invested in a risk-free asset and two stocks. If one of the stocks has a beta of 1.29 and the total portfolio is...

  • 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%

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