# Calculate The Expected Returns Of Your Portfolio

Calculate the expected returns of your portfolioStockInvestExp RetA$358 8. 1%B$954 18. 1%C$1,383 26%Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12. 345% then enter as 12. 35 in the answer box. 1 points QUESTION 2Suppose a stock had an initial price of $64. 29 per share, paid a dividend of $5 per share during the year, and had an ending share price of $94. 19. What are the dollar returns?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12. 345 then enter as 12. 35 in the answer box. 1 points QUESTION 3Suppose the returns for Stock A for last six years was 4%, 7%, 8%, -2%, 9%, and 7%. Compute the standard deviation of the returns. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0. 12345 then enter as 12. 35 in the answer box. 1 points QUESTION 4You own a portfolio invested 19. 2% in Stock A, 19. 27% in Stock B, 28. 6% in Stock C, and the remainder in Stock D. The beta of these four stocks are 0. 82, 0. 69, 0. 94, and 0. 91. What is the portfolio beta?Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12. 345 then enter as 12. 35 in the answer box. 1 points QUESTION 5Suppose a stock had an initial price of $66. 22 per share, paid a dividend of $4. 3 per share during the year, and had an ending share price of $84. 92. What are the percentage returns?Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0. 12345 then enter as 12. 35 in the answer box. 1 points QUESTION 6Calculate the expected returns of your portfolioStockInvestExp RetA$427 3. 6%B$921 16. 7%C$330 28. 7%Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12. 345% then enter as 12. 35 in the answer box. 1 points QUESTION 7You own a portfolio invested 26. 47% in Stock A, 18. 59% in Stock B, 22. 2% in Stock C, and the remainder in Stock D. The beta of these four stocks are 1. 35, 1. 33, 0. 29, and 1. 26. What is the portfolio beta?Note: Enter your answer rounded off to two decimal points. For example, if your answer is 12. 345 then enter as 12. 35 in the answer box. 1 points QUESTION 8Suppose a stock had an initial price of $96. 73 per share, paid a dividend of $7. 3 per share during the year, and had an ending share price of $103. 32. What are the percentage returns if you own 25 shares?Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0. 12345 then enter as 12. 35 in the answer box. 1 points QUESTION 9A portfolio is invested 23. 1% in Stock A, 20. 1% in Stock B, and the remainder in Stock C. The expected returns are 15. 3%, 24%, and 21. 7% respectively. What is the portfolio’s expected returns?Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12. 345% then enter as 12. 35 in the answer box. 1 points QUESTION 10Based on the following information, calculate the expected returns: ProbReturnRecession 30% 36. 4%Boom 70% 9. 8%Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 12. 345% then enter as 12. 35 in the answer box. 1 points QUESTION 11Suppose a stock had an initial price of $60. 63 per share, paid a dividend of $4. 6 per share during the year, and had an ending share price of $97. 82. What are the percentage returns?Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0. 12345 then enter as 12. 35 in the answer box. 1 points QUESTION 12Suppose a stock had an initial price of $75. 53 per share, paid a dividend of $8 per share during the year, and had an ending share price of $80. 82. If you own 277 shares, what are the dollar returns?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12. 345 then enter as 12. 35 in the answer box. 1 points QUESTION 13You have observed the following returns on ABC’s stocks over the last five years: 4. 1%, 9%, -7%, 11%, -6. 7%What is the arithmetic average returns on the stock over this five-year period. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0. 12345 then enter as 12. 35 in the answer box. 1 points QUESTION 14Portfolio diversification eliminates which one of the following?Total investment riskPortfolio risk premiumMarket riskUnsystematic riskReward for bearing risk1 points QUESTION 15A $36,000 portfolio is invested in a risk-free security and two stocks. The beta of stock A is 1. 29 while the beta of stock B is 0. 90. One-half of the portfolio is invested in the risk-free security. How much is invested in stock A if the beta of the portfolio is 0. 58?$6,000$9,000$12,000$15,000$18,0001 points QUESTION 16What is the beta of the following portfolio? 1. 081. 141. 171. 211. 231 points QUESTION 17The systematic risk is same as: Unique riskDiversifiable riskAsset-specific riskMarket riskUnsystematic risk1 points QUESTION 18You own a portfolio that has $1,900 invested in Stock A and $2,700 invested in Stock B. If the expected returns on these stocks are 9 percent and 15 percent, respectively, what is the expected return on the portfolio?10. 57 percent11. 14 percent11. 96 percent12. 52 percent13. 07 percent1 points QUESTION 19The stock of Billingsley United has a beta of 0. 92. The market risk premium is 8. 4 percent and the risk-free rate is 3. 2 percent. What is the expected return on this stock?8. 87 percent9. 69 percent10. 93 percent11. 52 percent12. 01 percent1 points QUESTION 20What is the beta of the following portfolio? 0. 981. 021. 111. 141. 201 points QUESTION 21Standard deviation measures _____ risk while beta measures _____ risk. systematic, unsystematicunsystematic, systematictotal, unsystematictotal, systematicasset-specific, market1 points QUESTION 22You own a portfolio of two stocks, A and B. Stock A is valued at $6,540 and has an expected return of 11. 2 percent. Stock B has an expected return of 8. 1 percent. What is the expected return on the portfolio if the portfolio value is $9,500?9. 58 percent9. 62 percent9. 74 percent9. 97 percent10. 23 percent1 points QUESTION 23If markets are efficient, the difference between the instrinsic value and the market value of the comapny’s security is: zeropositivenegative1 points QUESTION 24Semi-strong-form efficient markets are not weak-form efficient. True False1 points QUESTION 25Suppose the real rate is 3. 33% and the nominal rate is 8. 28%. Solve for the inflation rate. Use the Fisher Effect equation. Note: Enter your answer in percentages rounded off to two decimal points. Do not enter % in the answer box. For example, if your answer is 0. 12345 then enter as 12. 35 in the answer box. 1 points Click Save and Submit to save and submit. Click Save All Answers to save all answers.