Business, 25.12.2019 05:31, stephanieanaya7

Penny francis inherited a $200,000 portfolio of investments from her grandparents when she turned 21 years of age. the portfolio is comprised of treasury bills and stock in ford (f) and harley davidson (hog): a. based on the current portfolio composition and the expected rates of return, what is the expected rate of return for penny's portfolio? b. if penny wants to increase her expected portfolio rate of return, she can increase the allocated weight of the portfolio she has invested in stock (ford and harley davidson) and decrease her holdings of treasury bills. if penny moves all her money out of treasury bills and splits it evenly between the two stocks, what will be her expected rate of return? c. if penny does move money out of treasury bills and into the two stocks, she will reap a higher expected portfolio return, so why would anyone want to hold treasury bills in their portfolio?

Answers: 1

Show answers

Other questions on the subject: Business

Business, 22.06.2019 01:00, Travon1418

Azster inc. recorded sales revenue for the year that ended december 31, 2014 as $67,000. interest revenue of $5,300 and expenses of $14,000 were also recorded for the same period. what is aster’s net profit or loss?

Answers: 3

continue

Business, 22.06.2019 02:30, tdyson3p6xvtu

The dollar value generated over decades of customer loyalty to your company is known as brand equity. viability. sustainability. luck.

Answers: 1

continue

Business, 22.06.2019 11:10, flippinhailey

Suppose that the firm cherryblossom has an orchard they are willing to sell today. the net annual returns to the orchard are expected to be $50,000 per year for the next 20 years. at the end of 20 years, it is expected the land will sell for $30,000. calculate the market value of the orchard if the market rate of return on comparable investments is 16%.

Answers: 1

continue

Business, 22.06.2019 11:40, nelly88

If kroger had whole foods’ number of days’ sales in inventory, how much additional cash flow would have been generated from the smaller inventory relative to its actual average inventory position? round interim calculations to one decimal place and your final answer to the nearest million.

Answers: 2

continue

Do you know the correct answer?

Penny francis inherited a $200,000 portfolio of investments from her grandparents when she turned 21...