Purchase Solution

return on stock and return on portfolio

Not what you're looking for?

Ask Custom Question

Suppose you have invested $30,000 in the following four stocks:
Security Amount Invested Beta
Stock A $5,000 0.75
Stock B $10,000 1.1
Stock C $8,000 1.36
Stock D $7,000 1.88

Purchase this Solution
Solution Summary

This job figures a return on stock and portfolio.

Purchase this Solution
Free BrainMass Quizzes
Introduction to Finance

This quiz test introductory finance topics.

Cost Concepts: Analyzing Costs in Managerial Accounting

This quiz gives students the opportunity to assess their knowledge of cost concepts used in managerial accounting such as opportunity costs, marginal costs, relevant costs and the benefits and relationships that derive from them.

Writing Business Plans

This quiz will test your understanding of how to write good business plans, the usual components of a good plan, purposes, terms, and writing style tips.

Six Sigma for Process Improvement

A high level understanding of Six Sigma and what it is all about. This just gives you a glimpse of Six Sigma which entails more in-depth knowledge of processes and techniques.

Organizational Leadership Quiz

This quiz prepares a person to do well when it comes to studying organizational leadership in their studies.

View More Free Quizzes
Related BrainMass Solutions

  • Rate of Return-Investment Theory

    each in detail -Which return is a better measure of return on a portfolio, and when should you use each?

  • Risk and return on investment - Individual stocks and portfo

    126420 Risk and return on investment - Individual stocks and portfolio 1.

  • Basic concepts in Finance

    A stock has a beta of 1.15, the expected return on the market is 10 percent, and the risk-free rate is 3.5 percent. What must the expected return on this stock be? 5.

  • Predicting the Value of Two Stocks

    Expected Return on Stock A 8.00% Standard deviation of return on stock A 13.06% Expected Return on Stock B 13.00% Standard deviation of return on stock B 34.00% Correlation between stock A & B 0.48 Proportion

  • Expected Return

    expected return on stock 2 + proportion invested in stock 3 x expected return on stock 3 + Expected return on portfolio = 25% x 9% + 50% x 10% + 25% x 19% Or ,Expected return on portfolio = 2.25% +

  • Risk and Return

    If the expected returns on these stocks are 8 percent and 10 percent, respectively, the expected return on the portfolio is percent. You own a portfolio that is 54 percent invested in Stock X, 32 percent in Stock Y, and 14 percent in Stock Z.

  • Calculating expected return and drawing the CAL

    A low beta would result in risk reduction of the portfolio (ii) Stock Y is recommended since it has a higher forecasted return and a lower standard deviation so it is better than Stock X on stand alone basis. 6.

  • Weighted Average Return on a Portfolio

    Stock A has an expected return of 10% per year and stock B has an expected return of 20%. If 30% of the funds are invested in stock A, and the rest in stock B, what is the expected return on the portfolio of stock A and stock B? Justify your answer.

  • Financial Services questions: Relative Valuation, Analyzing a Portfolio, CAPM and more...

    Expected Returns - A stock has a beta of .7, the expected return on the market is 15%, and the risk-free rate is 6.5%. What must the expected return on this stock be?

  • Average return, standard deviation and coefficient of variation

    b.Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B. What would have been the realized rate of return on the portfolio in each year? What would have been the average return on the portfolio during this period?

View More Related Solutions