You invest $1,500 in VZ, $2,700 in KO, and $800 in BP. If VZ goes up 4%, KO goes down 3%, and BP goes down 1%, what is the return of your portfolio? 1.03% 2.25% -0.58% -2.31
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You invest $1,500 in VZ, $2,700 in KO, and $800 in BP. If VZ goes up 4%, KO goes down 3%, and BP goes down 1%, what is the return of your portfolio?
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1.03% |
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2.25% |
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-0.58% |
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-2.31 |
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- You invest $1,500 in VZ, $2,700 in KO, and $1,800 in BP. If VZ goes up 4%, KO goes up 3%, and BP goes down 1%, what is the return of your portfolio? -0.9% -3.7% 0.6% 2.1%Suppose that you invested S400, 000 in U.S Rubber, $600, 000 in Sony, and S 1,000,000 in JVC. Sony is expected to earn 18% and JVC is expected to earn 12%. What is the expected return of your portfolio?You have $10,000 to invest - $3,500 in Company ABC, the remaining amount in Company CBA. The expected returns for these stocks are 20% and 15%, respectively. The expected return on your portfolio is 18.25% 16.75%13.50%17.50%
- Suppose you invest $10,000 in Ford stock, and $30,000 in Tyco International Stock. You expect a return of 10% for Ford and 16% for Tyco. What is your portfolio’s expected return?You currently have ¢100,000 invested in the shares of Barko Ltd that has an expected return of 15% and a volatility of 10%. Suppose the risk-free rate is 3%, and the market portfolio has an expected return of 11% and a volatility of 5%. 1. What combination of the risk free rate and the market portfolio will give you the same return as your investment in the shares of Barko Ltd? What is the risk of this portfolio? 2. What combination of the risk free rate and the market portfolio offers the same risk as your investment in the shares of Barko Ltd? What is the return on this portfolio?Fremont Enterprises has an expected return of 16% and Laurelhurst News has an expected return of 24%. If you put 60% of your portfolio in Laurelhurst and 40% in Fremont, what is the expected return of your portfolio? (Round to 2 decimal places)
- Your portfolio consists of115 shares of CSH and 75 shares of EJH, which you just bought at $22and $28 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to$24 and EJH decreases to $24,what is the return on your portfolio?Suppose you buy 200 shares of Dolby Laboratories at $30 per share and 100 shares of Coca-Cola at $40 per share. If Dolby’s share price goes up to $36 and Coca-Cola’s falls to $38, what is the new value of the portfolio, and what return did it earn? After the price change, what are the portfolio weights?(a) Equity holders’ investment in the firm is K100 million, and the beta of the equity is 0.6. if the T-bill rate 6 %, and the market risk premium is 8 %. What would be a fair annual profit? (b) Stock XYZ has an expected return of 12 %, and risk of β and = 1.0. Stock ABC is expected to return 13 % with a beta of 1.5. The markets expected return is 11 % and risk free rate is 5 %. Which stock is a better buy? What is the alpha of each stock? Plot the SML and the two stocks and show the alphas of each on the graph? (c) The risk free rate is 8 % and the expected return on the market portfolio is 16 %. A firm is considering a project with an estimated beta of 1.3. What is the required rate of return on the project? If the IRR is of the project is 19 %, what is the project alpha?
- Your portfolio is made up of R50 000 invested in a share with a beta of 1,8, R100 000 invested in a share with a beta of 0,8, and R150 000 invested in a share with a beta of 1,2. The risk-free interest rate is 7%. This portfolio last year had a required rate of return of 13%. This year, nothing has changed except for the fact that the market risk premium has increased by 2 percent (two percentage points). What is the portfolio's current required rate of return? 1. 7,14% 2. 11,45% 3. 15,33% 4. 16,25%You are the investment manager for Global Assets Investments Company's mutual fund and you have US$690,000,000.00 to invest in Fidelity Co. ltd, a stock selling for US$46 per share. The initial margin requirement is 60%, and the maintenance margin is 40%. Show in detail the impact on your rate of return if the stock rises to US$57 per share and if it declines to US$19 per share assuming: (i) you pay cash for the stock (ii) you buy it using maximum leverage (B) Based on further market analysis you believe that the stock price of another company, Tower Equity Co. Ltd, may rise shortly and you have US$470,000 to open a second margin account to purchase Tower Equity's shares at US$23.50 per share. Assuming the initial margin requirement is 55%; (i) how many shares can you purchase using maximum allowable margin (ii) if the maintenance margin is 35% to what price can Tower Equity Co. Ltd stock fall before you receive a margin call (iii) one month later the stock falls to US$8 per share and…Salalah Oil,has a cost of equity capital equal to 22.8 percent. If the risk-free rate of return is 10 percent and the expected return on the market is 18 percent, then what is the firm's beta. Select one: a. None of these b. 1.20 c. 1.25 d. 1.60