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. Calculate both the arithmetic and the geometric average return of the following investment;Year 1 2 3 4Return 10.5% 12.2% -5.5% 2.8%(4 marks)b. Teena is considering investing in Stock A and stock B. She plans to invest $ 25,000 in the low riskstock and $ 50,000 in the high-risk stock. You have been given the following information about thesetwo stocks in the table below:Stock A BE(R) 15% 10? 25% 22%Correlation between A and B 0.20Based on the given information above, you are required to:i. Calculate the portfolio weightsii. Calculate the portfolio return.iii. Calculate the portfolio risk.iv. Compare portfolio risk with the individual stock risks and identify the benefit of thediversification of the portfolio.Suppose you bought $48,000 worth of stock A and $80,000 worth of stock B. The standard deviation of returns is 59% for stock A and 27% for stock B. The two stocks' returns have a correlation of 0.2. What is the standard deviation of this portfolio's returns? a. 15.2% b. 18.6% c. 23.6% O d. 26.9% O e. 30.4% QUESTION 10Investor X invested in three stocks equally. Return on his portfolio is 18%. Return of Stock A is 14% Return of Stock B is 15%. What is the return on Stock C? a) 8.33% b) -11.00% c) 25.00% d) 6.00%
- 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) 0.4An investor wants to earn 18% return by investing in a portfolio that contains Stock 1, Stock 2, and Stock 3. Expected return of Stock 1 is 19% and expected return of Stock 2 is 9%. What are weights of Stock 1 and Stock 2 to meet the required return? a. 10% and 90% respectively b. 90% and 10% respectively c. 0% and 100% respectively d. 95% and 200% respectivelyAnna holds a portfolio comprising the following 3 stocks: X, Y and Z. Investment Amount $'000 Beta Expected Return Security X 2,000 1.3 Security Y 1,000 1.0 10% Security Z 500 0 2% (a) Determine the expected return of security X. (b) Calculate the return of Anna's portfolio. (c) Calculate the beta of Anna's portfolio.
- You own a portfolio that has $3,00o0 invested in Stock A and $4,100 invested in Stock B. Assume the expected returns on these stocks are 10 percent and 16 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.) Expected return %Donald Gilmore has $100,000 invested in a 2-stock portfolio. $30,000 is invested in Stock X and the remainder is invested in Stock Y. X's beta is 1.50 and Y's beta is 0.70. What is the portfolio's beta? Select the correct answer. a. 0.73 b. 0.80 c. 0.87 d. 1.01 e. 0.94Alex has $1,000 invested in a three-stock portfolio. $200 are invested in Peter's Manufacturing, $100 in Jane's Manufacturing and the remainder is invested in a market ETF. Peter's beta is 1.30, and Jane's beta is 0.75. What is the portfolio's beta? a. 0.48 b. 0.74 C. 1 d. 1.035
- 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) 0.4Required: 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.3. You invest PHP 100,000.00 in Stock A, PHP 300,000.00 in Stock B. You expect a return of 10% for Stock A and 18% in Stock B. a. Determine the portfolio weights. b. What is your portfolio's expected return?