Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. you own a portfolio that has $2,200 invested in st

You own a portfolio that has $2,200 invested in Stock A and $3,550 invested in Stock...

Free

60.1K

Verified Solution

Question

Finance

You own a portfolio that has $2,200 invested in Stock A and$3,550 invested in Stock B. If the expected returns on these stocksare 10 percent and 17 percent, respectively, what is the expectedreturn on the portfolio? (Do not round your intermediatecalculations.)

A. 15.04%

B. 13.50%

C. 14.32%

D. 12.68%

E. 14.61%

Answer & Explanation Solved by verified expert
4.5 Ratings (641 Votes)

C. 14.32%

Step-1:Calculation of weight of investments
Investment in :
Stock A $       2,200
Stock B $       3,550
Total $       5,750
So, weight of :
Stock A $       2,200 / $    5,750 =      0.3826
Stock B $       3,550 / $    5,750 =      0.6174
Total      1.0000
Step-2:Calculation of expected return on portfolio
weight return
a b a*b
Stock A      0.3826 10% 3.83%
Stock B      0.6174 17% 10.50%
Portfolio's return 14.32%

Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Transcribed Image Text

You own a portfolio that has $2,200 invested in Stock A and$3,550 invested in Stock B. If the expected returns on these stocksare 10 percent and 17 percent, respectively, what is the expectedreturn on the portfolio? (Do not round your intermediatecalculations.)A. 15.04%B. 13.50%C. 14.32%D. 12.68%E. 14.61%

Other questions asked by students

Q

A financial advisor says she has an investment that will pay you $500 a month forever....

Finance
Q

You should aim for a list of 5-10 questions that focus on your thesis area. Thesis statement:...

Psychology
Q

Thirty-one small communities in Connecticut (population near 10,000 each) gave an average of x = 138.5...

Basic Math
Q

Dependent T (T-test for paired) Table should look like this. Answer the three parts. Shooting without noise Shooting with...

Advance Math
Q

The city of Raleigh has 11,900 registered voters. There are twocandidates for city council in...

Basic Math
Q

Sama has twice as many dimes as she has quarters and 17 more nickels than...

Algebra
Q

To determine the average of a set of test scores, add all of the scoresand...

Algebra
Q

NewTech purchases computer equipment for $257,000 to use in operating activities...

Accounting
Q

Provide a summary of each Nike and Under Armour investments in securities, including the companys...

Accounting
Q

El rango de actividad para el cual las estimaciones y predicciones probablemente sean precisas es...

Accounting
Q

Lavage Rapide is a Canadian company that owns and operates a large automatic car wash...

Accounting
Q

Break-Even Point Nicolas Inc, sells a product for $71 per unit. The variable cost is...

Accounting