Business, 14.04.2020 20:03 lebronbangs8930

You have $19,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of 15 percent and Stock Y with an expected return of 12 percent. Assume your goal is to create a portfolio with an expected return of 13.25 percent. How much money will you invest in Stock X and Stock Y?

Answers: 3

Show answers

Answers

Answer from: aesthetickait

Investment in Stock X will be $7917 and investment in Stock Y will be $11083.

Explanation:

The portfolio return is the weighted average of the individual stock returns that form up the portfolio. The weightage is the investment in a stock as a proportion of the total investment in portfolio.

To calculate the weightage of investment in the stock, we will use the portfolio return formula for two stocks portfolio.

rP = wX * rX + wY * rY

Where,

w represents the weightager represents the rate of return

Let x be the weightage of investment in Stock X or wX.

Let (1-x) be the weightage of investment in Stock Y or wY.

0.1325 = x * 0.15 + (1-x) * 0.12

0.1325 = 0.15x + 0.12 - 0.12x

0.1325 - 0.12 = 0.03x

0.0125 / 0.03 = x

x = 0.4167 or 41.67%

and (1-x) = 1 - 0.4167 = 0.5833 or 58.33%

Thus, investment in Stock X is 19000 * 41.67% = $7917.3 rounded off to $7917

Investment in Stock Y = 19000 * 58.33% = $11082.7 rounded off to $11083

Answer from: Quest

$527.7.if the following was the question $527.7 is the answer.students who are trying to raise funds have an agreement with a local pizza chain. the chain has agreed to sell them pizzas at a discount, which the students can then resell to families in the local community for a profit. it is expected that of the 500 families in the community, at most 70% will buy pizza. based on a survey of their personal preferences, the students believe that they should order no more than 120 cheese pizzas, no more than 150 pepperoni pizzas, and no more than 100 vegetarian pizzas. they also want to make sure that at least 20% of the total pizzas are cheese and at least 50% of the pizzas are pepperoni. they make a profit of $1.45, $1.75, and $1.98, respectively, for each cheese, pepperoni, and vegetarian pizza they resell. how many pizzas of each type should they buy?

Answer from: Quest

those r all of them i believe

Another question on Business

Business, 21.06.2019 22:40

Which economic indicators are used to measure the global economy? check all that apply. a. purchasing power parity b. trade volumes c. spending power parity d. labor market data e. gross domestic product f. trade deficits and surpluses

Answers: 3

Answer

Business, 22.06.2019 12:20

Consider 8.5 percent swiss franc/u.s. dollar dual-currency bonds that pay $666.67 at maturity per sf1,000 of par value. it sells at par. what is the implicit sf/$ exchange rate at maturity? will the investor be better or worse off at maturity if the actual sf/$ exchange rate is sf1.35/$1.00

Answers: 2

Answer

Business, 22.06.2019 13:40

The cook corporation has two divisions--east and west. the divisions have the following revenues and expenses: east west sales $ 603,000 $ 506,000 variable costs 231,000 300,000 traceable fixed costs 151,500 192,000 allocated common corporate costs 128,600 156,000 net operating income (loss) $ 91,900 $ (142,000 ) the management of cook is considering the elimination of the west division. if the west division were eliminated, its traceable fixed costs could be avoided. total common corporate costs would be unaffected by this decision. given these data, the elimination of the west division would result in an overall company net operating income (loss)

Answers: 1

Answer

Business, 22.06.2019 15:20

Sauer food company has decided to buy a new computer system with an expected life of three years. the cost is $440,000. the company can borrow $440,000 for three years at 14 percent annual interest or for one year at 12 percent annual interest. assume interest is paid in full at the end of each year. a. how much would sauer food company save in interest over the three-year life of the computer system if the one-year loan is utilized and the loan is rolled over (reborrowed) each year at the same 12 percent rate? compare this to the 14 percent three-year loan.

Answers: 3

Answer

You know the right answer?

You have $19,000 to invest in a stock portfolio. Your choices are Stock X with an expected return of...

Questions