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Calculate the weighted average expected return of the portfolio.
Stock Investment Expected Return
A $20,000 15%
B $4,000 10%
C $26,000 12%
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- Calculate the expected return on the following portfolio, consisting of Stocks A, B & C: Stock A: Investment of $1,000; 10% Expected Return Stock B: Investment of $4,000; 8% Expected Return Stock C: Investment of $5,000; 6% Expected ReturnSet up the complete formula for Dollar Weighted Return (DWR) for the following portfolio including final value of the portfolio. Year 0 1 2 3 4 Actions at the ending of the year (Yr0)Starting with $1000 (Yr1)Adding $100 (Yr2)Withdrawing $200 (Yr3)Adding $300 (Yr4)Ending Value = ? ROR during each Yr (Yr0) - (Yr1) 8% (Yr2)-4% (Yr3) 9% (Yr4) 3% A. Calculate the time weighted return (TWR) Complete Questions with respect to ExcelWhat is the expected return for the following portfolio? (State your answer in percent with two decimal places.) Stock Expected returns Investment AAA 35% $500,000 BBB 29% $1,300,000 CCC 18% $1,200,000 DDD 7% $1,500,000 O.17.13% O.19.40% O.21.01% O.22.21% O.23.88%
- What is the expected return of a portfolio consisting of $6,000 stocks G and $4,000 stock H ? State of Probability of Returns if State Occurs Economy State of Economy Stock G (" Stock H ")/(11%) Boom 22% 14% 1% Normal 78% 7% 9% a. 7.2% b. 7.6% c. $7.9% d. 8.3% e. $8.9% 33. Joel Foster is the portfolio manager of the SF Fund, a $1 million hedge fund that contains the following stocks. The required rate of return on the market is 10% and the risk-free rate is 4%. What rate of return should investors expect (and require) on this fund? Stoo Amount bar(A) 270,000 B 330,000 1.4 bar(C) 400,000 0.7 $1,000,000 a. 8.756% b. 9.382% c. 9.921%2. Capital Asset Pricing Model Risk-free rate : 2.5% Market rate of return: 8.5% Beta: .90 Using the information above, calculate the risk of the stockWhat is the expected return of the following portfolio? Stock Price Per Share Number of Shares Security Expected Return A $ 16 1509.01 B $ 13 175 10.53
- What is the expected return on a portfolio with 45% investment in asset A and the remainder in asset B? (Assume that the expected return for asset A and asset B are 15% and 9% respectively? a. 11.7% b. 14.6% c. 13.2% d. 12.9%calculate portfolio risk and return based on following combination: 70% invested in Stock A, 30% in Stock BUsing Capital Asset Pricing Method (CAPM), compute for the cost of capital (equity) with risk-free rate of 4%, market return of 8% and Beta of 1.75 a. 13.00% b. 12.00% c. 11.00% d. 10.00%
- Stock Expected Return A 15% B 10% C 22% D 14% Use the information in the schedule above to answer the following: (a). What is the expected return on a portfolio consisting of an equal amount invested in each stock (5 points)Required: a. The expected returns for stock A and stock B b. The standard deviation of stock A and stock B's returns. c. Assume that you invest 40% of your wealth in stock A and 60% of your wealth in the S&P 500. Calculate the expected return of your portfolio.Example 9: What is the portfolio standard deviation for a two-asset portfolio comprised of the following two assets if the correlation of their returns is 0.5? Asset A Asset B Expected return Stańdard deviation of expected returns 10% 20% 5% 20% Amount invested 740,000 760,000