Take a Test - Jared Myers - Micr mat FIN305.NO1- Fall 2017 Jared Myers 1 1/3/17

Question

Take a Test - Jared Myers - Micr mat FIN305.NO1- Fall 2017 Jared Myers 1 1/3/17 34 Quiz: Bonus Quiz 3FA Time Remaining: 00:32:11 Subr This Question: 1 pt 10 of 12 (6 complete) This Quiz: 12 pts lf Microsoft stockholders expect either a 24 4% return or a 1 7% return, each with a 50% probabilty, and Apple Computer shareholders expect a 10 4% return with certainty, what is the expected return from a portfolio comprised of equal amounts of stock from both firms? The expected return on the portfolio is % (Round to two decamal places) here to search

Explanation / Answer

Expected return on portfolio 11.73%

High % Low % Expected return Weight Weighted return a b c=(a+b)/2 d=given e=c*d Microsoft 24.40% 1.70% 13.05% 50% 6.53% Apple 10.40% 50% 5.20% Total 11.73%

Related Questions

Navigate

• Browse (All)
• Browse T
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.