Question

Fremont Enterprises has an expected return of 15% and Laurelhurst News has an expected return of...

Fremont Enterprises has an expected return of 15% and Laurelhurst News has an expected return of 20%. If you put 70% of your portfolio in Laurelhurst and 30% in​ Fremont, what is the expected return of your​ portfolio?

USING EXCEL!

Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Ans:-

Therefore, the expected return of the Portfolio is 18.50%.

Note:- If this answer helps you pls give thumbs up.

0 0
Know the answer?
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
Similar Questions
Fremont Enterprises has an expected return of 16 % and Laurelhurst News has an expected return...
Fremont Enterprises has an expected return of 16 % and Laurelhurst News has an expected return of 20%. If you put 45 %of your portfolio in Laurelhurst and 55 % in​ Fremont, what is the expected return of your​ portfolio? The expected return on the portfolio is __​%. ​(Rounded to two decimal​ places.)
Small Stocks S&P 500 Corporate Bonds T-Bills Average Return 19.73% 12.31% 6.36% 3.98% Standard Deviation of...
Small Stocks S&P 500 Corporate Bonds T-Bills Average Return 19.73% 12.31% 6.36% 3.98% Standard Deviation of returns 38.67% 19.52% 6.75% 4.88% 1. Calculate the 95% prediction intervals for the four different investments included in the following table. The 95% prediction interval of small stocks is between __% and __%. (Round to two decimal places and put the lower number first.) The 95% prediction interval of the S&P500 is between __% and __%. (Round to two decimal places and put the...
The expected return of Asset A and Asset B are 15% and 20% respectively, and the...
The expected return of Asset A and Asset B are 15% and 20% respectively, and the standard deviation of the two assets are 20% and 30% respectively. The correlation coefficient between the two assets is zero. Suppose you form a portfolio using the two assets, and the expected return of your portfolio is 22.5%. Find out the standard deviation of your portfolio.
A stock fund has an expected return of 15% and a standard deviation of 25% and...
A stock fund has an expected return of 15% and a standard deviation of 25% and a bond fund has an expected return of 10% and a standard deviation of 10%. The correlation between the two funds is 0.25. The risk free rate is 5%. What is the (a) expected return and (b) standard deviation of the portfolio with 70% weight in the stock portfolio and 30% weight in the bond portfolio?
Stock X has an expected return of 12% and the standard deviation of the expected return...
Stock X has an expected return of 12% and the standard deviation of the expected return is 20%. Stock Z has an expected return of 7% and the standard deviation of the expected return is 15%. The correlation between the returns of the two stocks is +0.3. These are the only two stocks in a hypothetical world. What is the expected return and the standard deviation of a portfolio consisting of 80% Stock X and 20% Stock Z? Will any...
Stock X has an expected return of 12% and the standard deviation of the expected return...
Stock X has an expected return of 12% and the standard deviation of the expected return is 20%. Stock Z has an expected return of 7% and the standard deviation of the expected return is 15%. The correlation between the returns of the two stocks is +0.3. These are the only two stocks in a hypothetical world. What is the expected return and the standard deviation of a portfolio consisting of 80% Stock X and 20% Stock Z? Will any...
Assume that you manage a risky portfolio with an expected rate of return of 15% and...
Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 30%. The T-bill rate is 5%. Your client chooses to invest 120% of a portfolio in your fund and -20% in a T-bill money market fund. a. Suppose your risky portfolio includes the following investments in the given proportions: Stock A 30% Stock B 50% Stock C 20% What are the investment proportions of your client’s overall portfolio, including the...
You are creating a portfolio of two stocks. Pear Inc. has expected return of 15% and...
You are creating a portfolio of two stocks. Pear Inc. has expected return of 15% and standard deviation of 30%. InstaCafe Inc. has expected return of 13% and standard deviation of 40%. The two stocks' covariance is -0.036 and the risk free rate is 2%. What percentage of the Optimal Risky Portfolio will be invested in Pear Inc? Provide your answer in percent rounded to two decimals, omitting the % sign.
1a. Suppose that Apple stock has an expected return of 10% and a standard deviation of...
1a. Suppose that Apple stock has an expected return of 10% and a standard deviation of returns of 25%. The risk-free rate on the economy (measured as the yield on a one-year Treasury bond) is 5%. What is the Sharpe ratio of Apple stock?. 1b. Suppose that the only risky asset you are interested in holding is Apple stock. However, you would prefer to hold a portfolio with more risk. Specifically, you would like to hold a portfolio with return...
Assume that you manage a risky portfolio with an expected rate of return of 15% and...
Assume that you manage a risky portfolio with an expected rate of return of 15% and a standard deviation of 39%. The T-bill rate is 6%. Your client chooses to invest 70% of a portfolio in your fund and 30% in a T-bill money market fund. a. What is the expected return and standard deviation of your client's portfolio? (Round your answers to 2 decimal places.) Expected return % per year Standard deviation % per year b. Suppose your risky...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT