Expected return on portfolio

Related BrainMass Solutions

• Expected return on portfolio; beta; riskier stock

  on the portfolio, the beta for the portfolio and the expected return on General Motors.

• Investing in Market Based Portfolio

  Expected Return of Portfolio A = 11% Expected Return of Portfolio B = 14% Beta of Portfolio A = 0.8 Beta of Portfolio B = 1.5 Risk free rate = 6% Return on Market = 12% Standard deviation of portfolio A=10% Standard deviation of portfolio B=31%

• Risk and return on investment - Individual stocks and portfo

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

• Calculating expected return and drawing the CAL

  183298 Expected Return Please see the attached file. 1 Asset Expected Return Standard Deviation Weight X 15% 22% 0.5 Y 10% 8% 0.4 Z 6% 3% 0.1 What is the expected return on this three -asset portfolio? 6.

• Finding the Standard Deviation of a Portfolio Using Beta

  Once investor creates a portfolio on the efficient frontier with an expected return of 10%: Required return on a security (or portfolio) = Risk-free rate + (Beta*(Expected return on the market - risk-free rate)) .10 = .07 +(Beta*(.12-.07)) .10 =

• Expected Return

  expected return on the market portfolio is 18 percent.

• Musumeci's Expected Portfolio Return

  expected portfolio return is calculated based on Musumeci's investment portfolio.

• Capital Asset Pricing Model- expected return, volatility

  = r f = 5.00% return on market portfolio= r m = 10.00% volatility of efficient portfolio= σp= to be determined volatility of market portfolio= σm= 18.00% return on efficient portfolio= r p = 12.00%

• 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.