Question

You are contemplating a $200,000 investment portfolio containing three different assets. You plan to invest $50,000,...

You are contemplating a $200,000 investment portfolio containing three different assets. You plan to invest $50,000, $90,000, and $60,000 in assets A, B, and C, respectively. A, B, and C have expected annual returns of 13%, 18%, and 9%, respectively. The expected return of this portfolio is ______%? Round it to two decimal places.

0 0
Add a comment Improve this question Transcribed image text
Answer #1

Portfolio return=Respective return*Respective investment weight

=(50,000/200,000*13)+(90,000/200,000*18)+(60,000/200,000*9)

which is equal to

=14.05%

Add a comment
Know the answer?
Add Answer to:
You are contemplating a $200,000 investment portfolio containing three different assets. You plan to invest $50,000,...
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

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
  • 39 An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000...

    39 An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K; $25,000 will be invested in asset R, with an expected annual return of 12 percent; $10,000 will be invested in asset J, with an expected annual return of 18 percent; and $15,000 will be invested in asset K, with an expected annual return of 8 percent. The expected annual return of this portfolio is О 10.00% 12.67% 12.00% 11.78%

  • Assume you are considering a portfolio containing two​ assets, L and M. Asset L will represent...

    Assume you are considering a portfolio containing two​ assets, L and M. Asset L will represent 39 % of the dollar value of the​ portfolio, and asset M will account for the other 61 %. The projected returns over the next 6​ years, 2018-2023​, for each of these assets are summarized in the following​ table: LOADING.... a. Calculate the projected portfolio​ return, r over p​, for each of the 6 years. b. Calculate the average expected portfolio​ return, r over...

  • Assume you are considering a portfolio containing two assets, Land M. Asset L will represent 59...

    Assume you are considering a portfolio containing two assets, Land M. Asset L will represent 59 % of the dollar value of the portfolio, and asset M will account for the other 41 %. Assume that the portfolio is rebalanced at the end of each year. The expected returns over the next 6 years, 2018dash2023, for each of these assets are summarized in the following table: Year 2018 2019 2020 2021 2022 2023 Projected Return Asset L Asset M 13%...

  • You have $25,000 to invest in a portfolio containing Stock A and Stock B. Assume that...

    You have $25,000 to invest in a portfolio containing Stock A and Stock B. Assume that Stock A has an expected return pf 13%, and Stock B has an expected of 9%. a) How much money will you invest in stock B if your goal is to create a portfolio that has an expected returrn of 11%? b) How much money will you invest in stock A if your goal is to create a portfolio that has an expected return...

  • Assume you are considering a portfolio containing two​ assets, L and M. Asset L will represent...

    Assume you are considering a portfolio containing two​ assets, L and M. Asset L will represent 58 % of the dollar value of the​ portfolio, and asset M will account for the other 42 %. Assume that the portfolio is rebalanced at the end of each year. The expected returns over the next 6​ years, 2018-2023​, for each of these assets are summarized in the following​ table: Projected Return Year Asset L Asset M 2018 14% 19​% 2019 13​% 18​%...

  • You have $150,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that h...

    You have $150,000 to invest in a portfolio containing Stock X and Stock Y. Your goal is to create a portfolio that has an expected return of 10.35 percent. Stock X has an expected return of 9.54 percent and a beta of 1.24 and Stock Y has an expected return of 6.42 percent and a beta of .72.    How much money will you invest in Stock Y? (A negative answer should be indicated by a minus sign. Do not...

  • Assume you are considering a portfolio containing two assets, L and M Asset L will represent...

    Assume you are considering a portfolio containing two assets, L and M Asset L will represent 37% o the dollar value of the portfolio and asset M will account for the other 63%. The pro ected returns over he next 6 years, 2018-2023, for each of these assets are summarized in the following table: a. Calculate the projected portfollo return, rp for each of the 6 years. b. Calculate the average expected portolio return, rp, over the 6-year period. c....

  • Assume you are considering a portfolio containing two​ assets, L and M. Asset L will represent...

    Assume you are considering a portfolio containing two​ assets, L and M. Asset L will represent 44% of the dollar value of the​ portfolio, and asset M will account for the other 56%. The projected returns over the next 6​ years, 2018 - 2023​, for each of these assets are summarized in the following​ table: Projected Return Year Asset L Asset M 2018 13​% 19​% 2019 14​% 19​% 2020 17​% 15​% 2021 16​% 15​% 2022 16​% 11​% 2023 18​% 11​%...

  • Need a help with a, b, and c please. Thank you. You are considering an investment...

    Need a help with a, b, and c please. Thank you. You are considering an investment in a mutual fund with a 4% load and an expense ratio of 0.55%. You can invest instead in a bank CD paying 6% interest. a. If you plan to invest for two years, what annual rate of return must the fund portfolio earn for you to be better off in the fund than in the CD? Assume annual compounding of returns (Do not...

  • What is the expected return of three-stock portfolio if you invest 30% of your investment into...

    What is the expected return of three-stock portfolio if you invest 30% of your investment into a stock with the expected return of 13%, 50% into a stock with the expected return of 8%, and the rest into a stock with the expected return of 3%? Round to the nearset hundredth percent. Answer in the percent format. Do not include % sign in your answer (i.e. If your answer is 4.33%, type 4.33 without a % sign at the end.)

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