Question

You own a portfolio that has $3,850 invested in Stock A and $6,100 invested in Stock B. If the expected returns on these stocks are 7.2 percent and 13.1 percent, respectively, what is the expected return on the portfolio?

Answer #1

The **return of a portfolio** is the
**weighted average return** of the securities which
constitute the porfolio.

Stock |
Investment($) |
Weight |
Expected Return(%) |
Weight*Expected
Return |

A | 3,850 | 0.3869* | 7.20 | 2.79 |

B | 6,100 | 0.6131** | 13.1 | 8.03 |

**Expected Return on Portfolio
= 10.82%** (2.79+8.03)

*Weight of stock A = 3850 / (3850+6100) = 3850/9950 = .3869

***Weight of stock B = 6100 / (3850+6100) = 6100/9950 = .6131 or 1-Weight of stock A

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%

You own a portfolio that is invested 43 percent in Stock A, 16
percent in Stock B, and the remainder in Stock C. The expected
returns on stocks A, B, and C are 9.1 percent, 16.7 percent, and
11.4 percent, respectively. What is the expected return on the
portfolio?

Question1: 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 18 percent, respectively. What is the expected return on the
portfolio?
Question 2: Johnson, Inc. has made a commitment to pay the
following dividends over the next four years: $7, $13, $18, and
$3.25. At the end of this four year period, the...

A. You own a $20,000 portfolio that is invested in a risk-free
security and Stock A. The beta of Stock A is 1.60 and the portfolio
beta is 1.00. What is the amount of the investment in Stock A?
B. Stock A has a beta of 2.0 and an expected return of 13.0
percent. Stock B has a beta of 1.12 and an expected return of 13.70
percent. At what risk-free rate would these two stocks be correctly
priced?

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%

You own a stock portfolio invested 15 percent in Stock Q, 35
percent in Stock R, 20 percent in Stock S, and 30 percent in Stock
T. The betas for these four stocks are .85, 56, 1.20, and 1.15,
respectively. What is the portfolio beta?

You own a stock portfolio invested 15 percent in Stock Q, 20
percent in Stock R, 5 percent in Stock S, and 60 percent in Stock
T. The betas for these four stocks are 0.71, 0.99, 0.53, and 0.63,
respectively. What is the portfolio beta?

You own a stock portfolio invested 25 percent in Stock Q, 15
percent in Stock R, 15 percent in Stock S, and 45 percent in Stock
T. The betas for these four stocks are 1.12, 1.38, 0.67, and 0.84,
respectively. What is the portfolio beta? Multiple Choice 1.01 0.95
0.98 0.92 0.97

You've invested $3,300 in Stock Arbuckle and $4,300 invested in
Stock Roscoe. The expected returns on these stocks are 11 percent
and 14 percent, respectively. Calculate the expected return on the
portfolio. (Do not round intermediate calculations. Enter
your answer as a percent rounded to 2 decimal places, e.g.,
32.16.)
Portfolio expected return % is ____.

A portfolio consists of $15,600 in Stock M and $24,400 invested
in Stock N. The expected return on these stocks is 9.10 percent and
12.70 percent, respectively. What is the expected return on the
portfolio?
Multiple Choice
10.90%
11.30%
10.50%
12.00%
9.63%

ADVERTISEMENT

Get Answers For Free

Most questions answered within 1 hours.

ADVERTISEMENT

asked 2 minutes ago

asked 32 minutes ago

asked 33 minutes ago

asked 36 minutes ago

asked 36 minutes ago

asked 46 minutes ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago

asked 1 hour ago