Business College

You have gathered the following information on your investments. What is the expected return on the portfolio? Stock Number of Shares Price per Share Expected Return F 310 $ 40 13.32 % G 315 $ 26 10.05 % H 255 $ 52 10.59 %

Answers

Answer 1

Answer:

Expected return on the portfolio = $3,879.00

Explanation:

a) Data and Calculations:

Stock   Number of Shares   Price per Share  Expected Return  Expected

                                                                                                       Value

F                   310                         $ 40                   13.32 %           $1,651.68

G                  315                         $ 26                   10.05 %            $823.09

H                 255                         $ 52                   10.59 %          $1,404.23

Total           880                                                                          $3,879.00

b) The expected return on the portfolio is the addition of the expected returns of each class of shares.  This is obtained by multiplying the number of shares in each class with the price and the expected return in percentage.  This gives a weighted value for the class of shares, which are then added to obtain the expected return on the portfolio.

Related Questions

Suppose that Mexico experienced a very severe period of inflation in 1972. As prices in Mexico rose, the demand in the foreign exchange market for Mexican pesos:

Answers

Answer:

demand for pesos would fall and supply would rise. their value would decrease as a result

Explanation:

Inflation is a persistent rise in general price level.

When there is high inflation in a country, the demand for the currency would fall because the value of the currency is low. this fall in demand coupled with the excess supply of the currency would lead to a fall in the value of the currency.

A project has estimated annual net cash flows of $56,600. It is estimated to cost $339,600.

Required:
Determine the cash payback period.

Answers

Answer:

It will take exactly 6 full years to cover for the initial investment.

Explanation:

Giving the following information:

Cash flow= $56,600

Initial investment= 339,600

The payback period is the time required for the cash flow to cover the initial investment:

Year 1= 56,600 - 339,600= -283,000

Year 2= 56,600 - 283,000= -226,400

Year 3= 56,600 - 226,400= -169,800

Year 4= 56,600 - 169,800= -113,200

Year 5= 56,600 - 113,200= -56,600

Year 6= 56,600 - 56,600= 0

It will take exactly 6 full years to cover for the initial investment.

Hughey Co. as lessee records a capital lease of machinery on January 1, 2011. The seven annual lease payments of $350,000 are made at the end of each year. The present value of the lease payments at 10% is $1,704,000. Hughey uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value). Round to the nearest dollar.

a) Prepare an amortization table for 2 011 and 2012.
b) Prepare all of Hughey's journal entries for 2011.

Answers

Answer:

Both requirements are solved below

Explanation:

An amortization table can be made as follows

DATA

Lease term = 7years

annual lease payments = $350,0000

Present value of the leases payment = $1,704,000

Implicit interest rate = 10%

Requirement A Amortization table for 2011 and 2012

Date   Annual payment  Effective    decreased      Balance

                                          interest        liability                                                                                                                     $1,704,000

12/31/11      $350,000      $170,400     $179,600     $1524,400

12/31/12      $350,000     $152,440     $197,560     $1,326,840

Requirement B journal entries for 2011

January 1  

Entry

                                      DEBIT           CREDIT

Leased machinery     $1,704,000

Lease liability                                   $1,704,000

December 31

Entry

                                      DEBIT           CREDIT

Interest expense       $170,400

Lease liability             $179,600

Cash                                                  $350,000

December 31

Entry

                                                   DEBIT           CREDIT

Depreciation expense(w)         $426,000

Accumulated depreciation                            $426,000

Working

Sum of the years =  (7+6+5+4+3+2+1)    = 28

Cost = $1,704,000

Residual value = $0

Estimated life = 7years

Depreciation expense = $1,704,000 x 7/28

Depreciation expense = $426,000

Solve the consumer’s problem for John’s optimal demand for Germ-X and Purell. (You should find actual numbers representing the quantity of Germ-X chosen and the quantity of

Answers

Answer:

Hello your question is incomplete below is the missing part and the needed diagram

suppose John is shopping and has $20 to spend on hand sanitizer. He can go with Germ-X (G) at $1 per fluid ounce (pG=1), or he can purchase purell (P) at $1.25 per fluid ounce (Pp=1.25). His utility function for the two different hand sanitizers is as follows:

U = G +1.1P

where G and P are measured in fluid ounces.

Solve the consumer’s problem for John’s optimal demand for Germ-X and Purell. (You should find actual numbers representing the quantity of Germ-X chosen and the quantity of purell chosen

ANSWER:  The solution =  (Germ-x,Purell ) = (20,0).

Explanation:

The consumers problem for John's optimal demand for Germ-x  and Purell as seen in the diagram can solved by John going maximizing his utility given the constraint of the budget,

that means that John will purchase/spend the constrained budget of ($20) on Germ-x  since the unit price of Germ X is at $1 while Purell's unit price is at $1.25 per fluid ounce

Other Questions
Represents the solution to the inequality -9=2/3x-7 The generic version was basedOn the brand name and was 2/3 the size of the brand name. If the generic television set is 12 inches by 24 inches what are the dimensions of the brand name television A bagel company bakes a specialty bagel that it sells by the dozen every day. These specialty bagels can only be baked early in the morning before the store opens for business. The company estimates that the daily demand (in dozens) for its specialty bagel is distributed as follows: Specialty bagels arc sold by the dozen only at a cost of $9.00 per dozen. The cost to make one bagel is $0.50. Leftover specialty bagels arc sold by the dozen the next day for a 50% discount. The optimal number of specialty bagels that should be baked tomorrow (in dozens) is:________ a) 5 dozen. b) 4 dozen. c) 3 dozen. d) 2 dozen. what cell structure helps the cell stay flexible and maintain homeostasis? Este Premio Nobel significa un portaestandarte para proseguir con la denuncia de la vioiacin de los Derechos Humanos, que se cometen contra los pueblos en Guatemala, en Amrica y en el mundo, y para desempear un papel positivo en la tarea que ms urge en mi pas, que es el logro de la paz con justicia social. Sin duda alguna, constituye una seal de esperanza para las luchas de los pueblos indgenas en todo el Continente. Tambin es un homenaje para los pueblos centroamericanos que an buscan su estabilidad, la conformacin de su futuro y el sendero de su desarrollo e integracin sobre la base de la democracia civil y el respeto mutuo. -speech Which sentence would be a part of the same speech in English? A In this moment, by a pure stroke of undeserved luck, I am the direct voice of the poets from my race and the indirect voice of the noble Spanish and Portuguese languages. B On top of all this, it is also an instrument in the fight for peace, for justice, for the rights of those who suffer economic, social, cultural, and political inequalities. C Our rash worship of progress and advances in our fight to dominate nature have converted into a career sui cide for me.D At the close of this century we have discovered that we are part of an immense system that goes from plants and animals to cells, molecules, atoms, and the stars in the sky. How has your learning inside and outside of the classroom changed your perspective about experiences you have in school and life in general Please help!Much appreciated! Hughey Co. as lessee records a capital lease of machinery on January 1, 2011. The seven annual lease payments of $350,000 are made at the end of each year. The present value of the lease payments at 10% is $1,704,000. Hughey uses the effective-interest method of amortization and sum-of-the-years'-digits depreciation (no residual value). Round to the nearest dollar. a) Prepare an amortization table for 2 011 and 2012. b) Prepare all of Hughey's journal entries for 2011. Which statement correctly compares1201 and1512ol-201 = 151ol-201 < 51l-201 > 151 This table represents a quadratic function.yx014110.52836.5456.5What is the value of a in the function's equation?A.2B.1/2C.-1/2D.1 how are different religions interdependent? Write a method named coinFlip that accepts as its parameter a string holding a file name, opens that file and reads its contents as a sequence of whitespace-separated tokens. Assume that the input file data represents results of sets of coin flips. A coin flip is either the letter H or T, or the word Heads or Tails, in either upper or lower case, separated by at least one space. You should read the sequence of coin flips and output to the console the number of heads and the percentage of heads in that line, rounded to the nearest whole number. If this percentage is 50% or greater, you should print a "You win!" message; otherwise, print "You lose!". For example, consider the following input file: H T H H T Tails taIlS tAILs TailS heads HEAds hEadS For the input above, your method should produce the following output: 6 heads (50%) You win! A.While the traits studied in Exercise 1 were hypothetical genetic traits, what type of genetic traits do you think are important to study and predict HELP ME PLZZZ!! ILL MARK YOU BRAINLIEST Which statement is an ineffective claim? Fast food restaurants are dangerous to America's youth. The driving age should be raised for three clear reasons. The United States should increase spending for nuclear power. Violent video games make teenagers more violent. Q1: You have to select an idea developing an application like web/mobile or industrial, it should be based on innovative idea, not just a simple CRUD application. After selecting the idea do the following: 1) How your project will be helpful and what problem this project addresses. (10-Marks) 2) Write down the requirements. (10Marks) 3) List the functional and non-functional requirements of your project. (10marks) 4) Which process model you will follow for this project and why? (10marks) 5) Draw the Level 0, and level 1 DFD of your application. (20marks) What two factors determine how much potential energy an object has? Plz Help I Will Mark Brainliest If Right f(x) = x^2 + 3 A). y > -3 B). All real numbers C). y 3 D). y 3 State if the triangles are similar. If so, how do you know they are similar and complete the similarity statement. Triangle LKJ____ A project has estimated annual net cash flows of $56,600. It is estimated to cost $339,600.Required:Determine the cash payback period. Evaluate. Write in standard form.