Transcribed Image Text
You bought an investment portfolio of 300 shares of xzy companyand 700 share OZ Company (5) years ago with total investment of$100,000. Today you can sell XZY for $125/share and OZ for155/share. XZY paid dividend $13.5/share per year and oz paid$18.5/share as its dividend each year. The following is the nextyear forecast relates to this portfolio. State of economyProbability of economic state Rate of return Boom 0.35 17% Normal0.55 13% Recession 0.10 -6% Required: 1) Calculate your dividendincome and capital gain from this portfolio if you decide to sellall the shares? 2) Calculate the expected return of the portfoliofor the next year 3) Determine the risk of the portfolio bycomputing portfolio standard deviation
Other questions asked by students
Psychology
Physics
Basic Math
Q
Underwood Company's ledger at the end of the current year shovs Accounts Receivable of $150,000....
Accounting
Accounting