Question

In your portfolio, you have 30% invested in Stock A, 10% in Stock B, and 60% in Stock C. The expected returns on these three stocks are 9 percent, 12 percent, and 6 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.) Multiple Choice 8.70% 7.50% 9.15% 8.25% 8.86%

Answer #1

**answer is option 2 =
Expected return of the portfolio = 7.50%**

table with information given in the question

secuurity | return (%) | proportion of investment |

A | 9 | 0.3 |

B | 12 | 0.1 |

C | 6 | 0.6 |

Expected return of the portfolio =
∑ x_{i} r_{i} ( summation of proportion
of the investment * expected return of security)

Expected return of the portfolio = (0.3 * 9) + (0.1 * 12) + (0.6 * 6)

Expected return of the portfolio = 2.7 + 1.2 + 3.6

**Expected return of the
portfolio = 7.50%**

A portfolio is invested 25 percent in Stock G, 55 percent in
Stock J, and 20 percent in Stock K. The expected returns on these
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What is the portfolio’s expected return? (Do not round intermediate
calculations and enter your answer as a percent rounded to 2
decimal places, e.g., 32.16.)

You've invested $3,300 in Stock Arbuckle and $4,300 invested in
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your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Portfolio expected return % is ____.

Suppose the expected
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E(RA) = .100, E(RB) = .160,
σA = .370, and σB = .630.
a-1.
Calculate the expected
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percent Stock B when the correlation between the returns on A and B
is .60. (Do not round intermediate calculations and enter
your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
a-2....

You have been provided the following data on the securities of
three firms, the market portfolio, and the risk-free asset:
a. Fill in the missing values in the table.
(Leave no cells blank - be certain to enter 0 wherever
required. Do not round intermediate calculations and round your
answers to 2 decimal places, e.g., 32.16.)
Security
Expected Return
Standard Deviation
Correlation*
Beta
Firm A
.102
.33
.83
Firm B
.142
.52
1.38
Firm C
.162
.63
.37
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State of Probability of Economy State of Economy Stock A Stock B
Stock C Boom .25 .34 .46 .58 Normal .50 .14 .12 .10 Bust .25 .05
−.26 −.46 a-1. If your portfolio is invested 20 percent each in A
and B and 60 percent in C, what is the portfolio expected return?
(Do not round intermediate calculations and enter your answer as a
percent rounded to 2 decimal places, e.g., 32.16.) a-2....

There are two stocks in the market, Stock A and Stock B . The
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normal, and $107 if the economy is expanding. The probabilities of
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Suppose the expected returns and standard deviations of Stocks A
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intermediate calculations and enter your answer as a percent
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Suppose the expected returns and standard deviations of Stocks A
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