Calculate the expected return on the following portfolio, consisting of Stocks A, B & C: Stock A: Investment of $1,000; 10% Expected Return Stock B: Investment of $4,000; 8% Expected Return Stock C: Investment of $5,000; 6% Expected Return
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- Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 40%. Stock B has an expected return of 18% and a standard deviation of 60%. The correlation coefficient between Stocks A and B is 0.2. What are the expected return and standard deviation of a portfolio invested 30% in Stock A and 70% in Stock B?An analyst has modeled the stock of a company using the Fama-French three-factor model. The market return is 10%, the return on the SMB portfolio (rSMB) is 3.2%, and the return on the HML portfolio (rHML) is 4.8%. If ai = 0, bi = 1.2, ci = 20.4, and di = 1.3, what is the stock’s predicted return?A portfolio consists of $15,000 in Stock M and $22,900 invested in Stock N. The expected return on these stocks is 8.80 percent and 12.40 percent, respectively. What is the expected return on the portfolio?
- What is the expected return for the following portfolio? (State your answer in percent with two decimal places.) Stock Expected returns Investment AAA 35% $500,000 BBB 29% $1,300,000 CCC 18% $1,200,000 DDD 7% $1,500,000 O.17.13% O.19.40% O.21.01% O.22.21% O.23.88%If Expected return of stock A is 12%, Expected return of stock B is 15% and Expected return of stock C is 8%. 30 percent of the portfolio is invested in A, 50 percent is invested in B and 20 percent is invested in C, the expected return of the portfolio is a. 11.2 percent b. 12.7 percent c. 9.2 percent d. 7.5 percentThe Stocks A, B and C has a weight of 35%, 45%, and 30%, respectively, with a total portfolio value of 200,000.Stock A – 70,000 invested stocks, 10% expected returnStock B – 90,000 invested stocks, 12% expected returnStock C – 60,000 invested stocks, 8% expected return What is the expected return of portfolio? a. 12.3% b. 10.3% c. 11.3% d. 13.3%
- Suppose you have portfolio of four stocks Stock A, B, C and D, Total investment in these stocks is equal to 2019331015 $, Beta of these stocks is 1.5, (0.5), 1.25, and 0.75 and proportion invested is 22%, 20%, 30%, and remaining in D. If the Risk free rate is 6% and market rate of return is 15%. Calculate a) Investment in each stock. b) Market premium c) Required Rate of return for each stock. d) Required rate of return of Portfolio. e) If expected rate of return of stock A is 10%, what do you think if it is overvalued or undervalued.Currently the risk-free return is 3 percent and the market risk premium is 8 percent. What is the required rate of return on the following two-stock portfolio? Amount Invested Beta $70,000 1.4 $30,000 0.4You have a portfolio worth $78,500 that has an expected return of 11.9 percent. The portfolio has $17,500 invested in Stock O, $25,300 invested in Stock P, with the remainder in Stock Q. The expected return on Stock O is 18.7 percent and the expected return on Stock P is 11.9 percent. What is the expected return on Stock Q?
- 2-9 We have the following information on a portfolio consisting of Stocks A, B, and C: A B C Expectd annual return 25% 20% 15% Standard Deviation of Return 35% 30% 25% Price per share 100 85 75 # shares 100,000 150,000 200,000 correlation coefficient (A,B) 0.5 correlation coefficient (A,C) 0.2 correlation coefficient (B,C) .8 number of days per year 365 What…Calculate the weighted average expected return of the portfolio. Stock Investment Expected ReturnA $20,000 15%B $4,000 10%C $26,000 12%2-10 We have the following information on a portfolio consisting of Stocks A, B, and C: A B C Expectd annual return 25% 20% 15% Standard Deviation of Return 35% 30% 25% Price per share 100 85 75 # shares 100,000 150,000 200,000 correlation coefficient (A,B) 0.5 correlation coefficient (A,C) 0.2 correlation coefficient (B,C) .8 number of days per year 365…
