Lisa invested $3,000 in CJD stock, $4,000 in JCD stock, and $5,000 in JFD stock. CJD, JCD, and JFD have expected returns of 6%, 7% and 10%, respectively. What is the weighted average expected return for Lisa’s portfolio? a. 10% b. 8% c. 7% d. 9%
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Lisa invested $3,000 in CJD stock, $4,000 in JCD stock, and $5,000 in JFD stock. CJD, JCD, and JFD have expected returns of 6%, 7% and 10%, respectively. What is the weighted average expected return for Lisa’s portfolio?
a. 10%
b. 8%
c. 7%
d. 9%
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- a) Assume that you bought 200 stock B in your portfolio for total investment of $1200, now the market price of the stock is $75, the dividend paid for this stock is $2 each year. How much is the capital gain of this stock? b) Assume that the following data available for the portfolio, calculate the expected return, variance and standard deviation of the portfolio given stock A accounts for 45% and stock B accounts for 55% of your portfolio? A B Expected return 12.50% 18.50% Standard Deviation of return 15% 20% Correlation of coefficient (p) 0.4You own a portfolio that has $2,800 invested in Stock A and $3,900 invested in Stock B. Assume the expected returns on these stocks are 9 percent and 15 percent, respectively. What is the expected return on the portfolio? (Assume that you bought 200 stock B in your portfolio for total investment of $1200, now the market price of the stock is $75, the dividend paid for this stock is $2 each year. How much is the capital gain of this stock? Assume that the following data available for the portfolio, calculate the expected return, variance and standard deviation of the portfolio given stock A accounts for 45% and stock B accounts for 55% of your portfolio? A B Expected return 12.5% 18.5% Standard Deviation of return 15% 20% Correlation of coefficient (p) 0.4
- You own a portfolio that has $16,000 invested in Stock A and $17,000 invested in Stock B. The expected returns on these stocks are 14.9 percent and 9.7 percent, respectively. What is the expected return on the portfolio?Consider a portfolio that is comprised of two stocks A and B. The position in stock A is valued at £70,000 and has daily standard deviation of returns of 1%. The stock B position is valued at £250,000 and has daily standard deviation of returns of 2.5%. Returns in stock A and B are normally distributed and have correlation -0.6. a) Calculate the 10-day 95% VaR of stock A b) Calculate the 10-day 95% ES of stock AYou have recently received $400,000 and you are considering investing $250,000 in the WIG and the remainder in TJH. Your analysis of each stock revealed the following information. The Expected Returns of both companies are 8% and 6% respectively and the Standard Deviations are 7% and 9% respectively. The correlation between the companies is 0.5. i. Compute the expected return of the portfolio ii. Compute the standard deviation of the portfolio iii. Given the results and any other computations, you deem relevant fromthe information presented, explain whether a rational risk-averse investor would prefer to invest in the suggested portfolio or 100% in WIG or 100% in TJH
- You own a portfolio that has $1,600 invested in Stock A and $2,700 invested in Stock B. Assume the expected returns on these stocks are 11 percent and 17 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.)You own a portfolio that has $5,607 invested in Stock A and $2,853 invested in Stock B. If the expected returns on these stocks are 0.12 and -0.09, respectively, what is the expected return on the portfolio? Enter the answer with 4 decimals (e.g. 0.1234).Required: a. The expected returns for stock A and stock B b. The standard deviation of stock A and stock B's returns. c. Assume that you invest 40% of your wealth in stock A and 60% of your wealth in the S&P 500. Calculate the expected return of your portfolio.
- 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?The 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%You own a portfolio that has $18,000 invested in Stock A and $17,000 invested in Stock B. The expected returns on these stocks are 15.9 percent and 7.1 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.)