A portfolio consists of $15,000 in Stock M and $22,900 invested in Stock N. The expected return on these stocks is 8.80 percent and 12.40 percent, respectively. What is the expected return on the portfolio

Answers

Answer 1

Answer:

the expected return on the portfolio is 10.98%

Explanation:

The computation of the expected return is shown below;

Return on Stock M = $15,000 × 8.8% = $1,320  

Return on Stock N = $22,900 × 12.40% = $2,840

Now  

Portfolio return is

= ($1,320 + $2,840 ) ÷ ($37,900)

= 10.98%

The $37,900 comes from

= $15,000 + $22,900

= $37,900

hence, the expected return on the portfolio is 10.98%


Related Questions

SegR-7268 Corporation has two divisions, East and West. The following information was taken from last year's income statement segmented by division: East Division West Division Sales $3,700,000 $2,300,000 Contribution margin $1,650,000 $1,000,000 Divisional segment margin $1,100,000 $350,000 Net operating income last year for SegR-7268 Corporation was $600,000. In last year's income statement segmented by division, what were SegR-7268's total common fixed expenses?

a. $2,050,000
b. $850,000
c. $2,300,000
d. $1,200,000

Answers

Answer:

b. $850,000

Explanation:

Divisional Segment Margin = $1,100,000 + $350,000

Divisional Segment Margin = $1,450,000

Net Operating Income = $600,000

Common fixed expenses = Divisional Segment Margin - Net Operating Income

Common fixed expenses = $1,450,000 - $600,000

Common fixed expenses = $850,000

So, SegR-7268's total common fixed expenses will be $850,000.

Joint ventures offer low potential for leveraging a firm's existing competencies because they typically entail a short-term relationship between two or more firms.
A. True
B. False

Answers

Answer:

B. False

Explanation:

The main purpose of the joint venture is to help two or more companies so that they are in the position to gain the competitive advantage. So the potential for firm leverage that is existed would be high instead of low due to this reason also

So as per the given situation, the option b is correct

Hence, the option a is not correct

There are different types of business. Joint ventures offer low potential for leveraging a firm's existing competencies is a False statement.

A joint venture is known as when two or more businesses gather their resources and expertise together to achieve a set goal.

It is also called a partnership between 2 or more firms where there is significant equity stake by the partners and often resulting in the creation of a new business entity.

Joint ventures uses  a good amount of equity investment from each partner and can lead to the establishment of a new separate entity.

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Quantum Inc. has warrants outstanding that allow the holder to purchase 1.5 shares of stock per warrant at $30 per share (exercise price). Thus, each individual share can be purchased at $30 with the warrant. The common stock is currently selling for $36. The warrant is selling for $12.

Required:
a. What is the intrinsic (minimum) value of this warrant?
b. What is the speculative premium on this warrant?
c. What should happen to the speculative premium as the expiration date approaches?

Answers

Answer:

A. $9.00

B. $3.00

C. Decrease

Explanation:

a. Calculation to determine the intrinsic (minimum) value of this warrant

Using this formula

I = (M – E) × N

Where,

I represent Intrinsic value of a warrant

M represent Market value of common stock

E represent Exercise price of a warrant

N represent Number of shares each warrant entitles theholder to purchase

Let plug in the formula

I=($36 – $30) *1.5

I=$6*1.5

I = $9.00

Therefore the intrinsic (minimum) value of this warrant is $9.00

b. Calculation to determine the speculative premium on this warrant

Using this formula

S = W – I

Where,

S representSpeculative premium

W represent Warrant price

I represent Intrinsic value.

Let plug in the formula

S=$12-[($36 – $30) *1.5]

S=$12 – $9

S = $3.00

Therefore the speculative premium on this warrant is $3.00

c.What should happen to the SPECULATIVE PREMIUM as the expiration date approaches is for it to DECREASE and thereby approach $0.

As a marketing term, __________ generally includes not only physical goods, but also services and ideas. Multiple Choice marketing invention merchandise product concept

Answers

Answer:

product

Explanation:

The product is an item that the company offer to its customer for buying the product. It is not only the goods that to be kept physically but it also consist of the services and ideas so that it become differentiate with the competitor. The product can be differentiate in terms of cost, quality, quantity, presentable form via having the innovative ideas

So, the 2nd last option is correct

The price of the stock at the beginning of 2018 was $56.81 and you sold the stock at $68.14 at the end of the year. What is the dividend yield (use your answer from 3a above), capital gain(loss), and total percentage return

Answers

Question Completion:

The total dividends paid is $1,743,400 and the outstanding shares are 1,300,000.

Answer:

a. The dividend per share = $1.34

b. The dividend yield = 1.97%

c. The capital gain = $11.33

d. The total percentage return = 22.3%.

Explanation:

a) Data and Calculations:

Dividends paid = $1,743,400

Outstanding shares = 1,300,000

Dividends per share = $1.34 ($1,743,400/1,300,000)

Dividend yield = Dividend per share/Stock price

= $1.34/$68.14 = 1.97%

Capital gain = $11.33 ($68.14 - $56.81)

Total return = $12.67 ($11.33 + $1.34)

Total percentage return = Total return/Beginning Stock Price * 100

= $12.67/$56.81 * 100

= 22.3%

Selena Company has two products: A and B. The company uses activity-based costing. The estimated total cost and expected activity for each of the company's three activity cost pools are as follows: The activity rate under the activity-based costing system for Supporting Customers is closest to: Multiple Choice $18.53 $46.33 $21.67 $65.00

Answers

Answer:

the  activity rate  for Supporting Customers is $21.67

Explanation:

The computation of the activity rate under the activity-based costing system for Supporting Customers is shown below;

= Estimated overhead cost ÷ Total expected activity

= $26,000 ÷ 1,200

= $21.67

hence, the  activity rate  for Supporting Customers is $21.67

Therefore the third option is correct

can you have a sloth as a pet

Answers

Answer:

in most places yes

Explanation:

they are hard to care for tho

Answer:

i mean Ig it depends on if you need a license or have to pay alot for it

have a good day :)

Explanation:

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