Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets.
E(Rp)= 12%
Standard deviation of P 7.20%
Tbill rate 3.60%
Proportion of complete portfolio in P 80%
Proportion of complete portfolio in T bills 20%
Composition of P
Stock A 40%
Stock B 25%
Stock C 35%
Total 100%
What is the expected return on Bo's complete portfolio?
A) 10.32%
B) 5.28%
C) 9.62%
D) 8.44%
E) 7.58%
Answers: 1
Business, 21.06.2019 19:30, shamiya15
How can a poor housing market put home buyers in a financially unstable position? a. changing property values means it’s easier to find homes with low rental costs. b. when the home value decreases, property taxes and insurance costs increase. c. houses are valued lower than their purchase prices, so the home equity decreases. d. home buyers lose all tax benefits and tax incentives when the housing market goes down. e. mortgage payments can increase even though the home value decreases.
Answers: 1
Business, 22.06.2019 12:40, notorius315
Evan company reports net income of $232,000 each year and declares an annual cash dividend of $100,000. the company holds net assets of $2,130,000 on january 1, 2017. on that date, shalina purchases 40 percent of evan's outstanding common stock for $1,066,000, which gives it the ability to significantly influence evan. at the purchase date, the excess of shalina’s cost over its proportionate share of evan’s book value was assigned to goodwill. on december 31, 2019, what is the investment in evan company balance (equity method) in shalina’s financial records?
Answers: 2
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