Question

You have a portfolio made up of 4 stocks. Stock W, with a weight of 10%,...

You have a portfolio made up of 4 stocks. Stock W, with a weight of 10%, has an expected return of 6%. Stock X, with a weight of 20%, has an expected return of 23%. Stocks Y and Z each have weights of 35% and expected returns of 3% and 19% respectively. What is the expected return of your portfolio? Write the expected return in percent form, round to two decimal places.

(Please show all steps and equation used if possible show excel formula)

Homework Answers

Know the answer?
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
Similar Questions
You have a portfolio made up of 4 stocks. Stock W, with a weight of 10%,...
You have a portfolio made up of 4 stocks. Stock W, with a weight of 10%, has an expected return of 12%. Stock X, with a weight of 20%, has an expected return of 19%. Stocks Y and Z each have weights of 35% and expected returns of 4% and 12% respectively. What is the expected return of your portfolio? Write the expected return in percent form, round to two decimal places.
A portfolio is made up of Stocks A, B, C, and D in the proportion of...
A portfolio is made up of Stocks A, B, C, and D in the proportion of 20%, 30%, 25%, and 25% respectively. The nondiversifiable risks of the stocks as measured by their betas are 0.4, 1.2, 2.5, and 1.75 for Stock A, B, C, and D respectively. The expected returns of the stocks are 12%, 24%, 30%, and 28% respectively. Measure the beta of the portfolio.
1. You have observed the following returns on Stock A's stocks over the last five years:...
1. You have observed the following returns on Stock A's stocks over the last five years: 3.24%, 31.37%, 21.94%, 22.49%, 31.59% What is the average return on the stock over this five-year period? 2. A portfolio has three stocks: Stock A, Stock B, and Stock C. Stock A has a return of -6.35%. Stock B has a return of 10.28%. The weight of Stock A in the portfolio is 30%. The weight of stock B in the portfolio is 35%....
James is building a 3-stock portfolio. The weights and returns of the stocks are below. The...
James is building a 3-stock portfolio. The weights and returns of the stocks are below. The Risk-Free Rate is 3%. What is the Expected Return of this portfolio? Weight A = 60%; Weight B = 25%; Weight C = 15%; Return A = 15%; Return B = -3%; Return C = 2.9%. 1. 7.50% 2. 8.70% 3. 11.70% 4. 17.90%
I have a portfolio of 56 stocks with varying weights. My particular stock holds a weight...
I have a portfolio of 56 stocks with varying weights. My particular stock holds a weight of 1/56. Please walk me through the steps of how to calculate the: 1) 5 year beta of my stock with the portfolio 2) 5 year beta of my stock with the S&P 500 3) 5 year beta of the portfolio with the S&P 500
You own a portfolio that has $2,500 invested in stock A and $3,500 invested in stock...
You own a portfolio that has $2,500 invested in stock A and $3,500 invested in stock Z. If the expected returns on these stocks are 15% percent and 14% percent respectively, what is the expected return on the portfolio? Stock A $ value $2,500 Stock A E(R) 15.00% Stock Z $ value $3,500 Stock Z E(R) 14.00% 13.25% 15.75% 14.42% 16.92%
1) Suppose you have $100,000 to invest in a PORTFOLIO OF TWO stocks: Stock A and...
1) Suppose you have $100,000 to invest in a PORTFOLIO OF TWO stocks: Stock A and Stock B. Your analysis of the two stocks led to the following risk -return statistics: Expected Annual Return Beta Standard Deviation A 18% 1.4 25% B 12% 0.6 16% The expected return on the market portfolio is 7% and the risk free rate is 1%. You want to create a portfolio with NO MARKET RISK. a) How much (IN DOLLARS) should you invest IN...
Q9. The expected returns and standard deviations for stocks A and B are rA=14% and rB=19%,...
Q9. The expected returns and standard deviations for stocks A and B are rA=14% and rB=19%, respectively, and A=23% and B=34%, respectively. The correlation of the returns on the two stocks is AB=0.3. (a) What is the expected return, rP, and standard deviation, P, of a portfolio with weights of wA=0.60 and wB=0.40 in stocks A and B, respectively? (b) Suppose now ?? = 3%, and ?? = 7%, the portfolio had zero risk, that is suppose ?? = 0...
An investor currently holds the following portfolio of 4 stocks, each having equal weight: Stock Expected...
An investor currently holds the following portfolio of 4 stocks, each having equal weight: Stock Expected Return (rs) Beta A 13.2% 1.70 B 12.00% 1.5 C 6.0% 0.5 D 7.8% 0.8 a. What is the portfolio’s expected return? b. What is the portfolio’s beta risk? Is it more or less risky than the market? c. Is the portfolio more or less risky than the market? How do you know? The investor is not comfortable with holding a portfolio that has...
You have one share of Sierra stock and one share of Tango stock in a portfolio....
You have one share of Sierra stock and one share of Tango stock in a portfolio. Both are equally priced. Both have an expected return of 9% and both have a standard deviation of returns of 2%. The returns of the two stocks are not perfectly correlated. Which of the following statements is true about this two-stock portfolio? A. The portfolio expected return is not 9% and the portfolio standard deviation is 2% B. Answer is not listed or is...