Matthew franklin has $41,000 invested in stock A and stock B. Stock A currently sells for...

Matthew franklin has $41,000 invested in stock A and stock B. Stock A currently sells for $40 a share and stock B sells for $70 a share. If stock B doubles in value and stock A goes up 50%, his stock will be worth $72,000. How many shares of each stock does he own?

Expert Solution

Rahul Sunny answered 2 years ago

A person has 43,000 invested un stock A and stock B. Stock A currently sells for...

A person has 43,000 invested un stock A and stock B. Stock A currently sells for $30 a share abd stock B sells for $80 a share. If stock B doubles in value and stock a goes up 50% his stock will be worth $84,000. How many shares of each stock does he own?

Heathcliff has invested 40% of his wealth in stock A and the remainder in stock B....

Heathcliff has invested 40% of his wealth in stock A and the remainder in stock B. He has assessed their prospects as follows; A (15% expected return & 20% Standard deviation) B (20% expected return & 22% Standard deviation) The correlation coefficient for these two stocks is ?AB= 0.50. 1. Calculate the expected return (ER) and risk (?) of his portfolio. 2. Is his portfolio better or worse than investing entirely in stock A? Why? 3. If the correlation coefficient...

A trader has invested equal amounts in Stock A and Stock B and knows the following:...

A trader has invested equal amounts in Stock A and Stock B and knows the following: Stock A’s daily average return is 0% and its daily standard deviation is 2%. Stock B’s daily average return is 0% and its daily standard deviation is 3%. The stocks have a correlation of 0.4. If returns are assumed to be normally distributed, calculate the 10 day Value-at-Risk (VaR) for this portfolio at the 99% level

Franklin Resources stock is currently selling for $55.00 a share but is expected to either decrease...

Franklin Resources stock is currently selling for $55.00 a share but is expected to either decrease to $49.50 or increase to $60.50 a share over the next year. The risk-free rate is 3 percent. What is the current value of a 1-year call option with an exercise price of $55? $2.95 $3.21 $3.47 $3.73 $3.96

What is the expected return of a portfolio that has invested $14,744 in Stock A, $9,716 in Stock B, and $16,880 in Stock C?

Consider the following information:State Probability Stock A Stock B Stock CBoom 0.32 -0.09 0.17 0.18Bust 0.68 -0.07 0.04 -0.02What is the expected return of a portfolio that has invested $14,744 in Stock A, $9,716 in Stock B, and $16,880 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).

What is the expected return of a portfolio that has invested $17,553 in Stock A, $19,931 in Stock B, and $3,294 in Stock C?

Consider the following information: State Probability Stock A Stock B Stock C Boom 0.32 -0.04 0.13 0.18 Bust 0.68 -0.06 0.1 -0.06 What is the expected return of a portfolio that has invested $17,553 in Stock A, $19,931 in Stock B, and $3,294 in Stock C? (Hint: calculate weights of each stock first). Enter the answer with 4 decimals (e.g. 0.1234).

You own a portfolio that has $9,283 invested in Stock A and $6,556 invested in Stock...

You own a portfolio that has $9,283 invested in Stock A and $6,556 invested in Stock B. If the expected returns on these stocks are 0.14 and 0.15, respectively, what is the expected return on the portfolio? Enter the answer with 4 decimals (e.g. 0.1234).

You own a portfolio that has $2,250 invested in Stock A and $3,450 invested in Stock...

You own a portfolio that has $2,250 invested in Stock A and $3,450 invested in Stock B. If the expected returns on these stocks are 11 percent and 17 percent, respectively, what is the expected return on the portfolio?

You own a portfolio that has $2,200 invested in Stock A and $3,550 invested in Stock...

You own a portfolio that has $2,200 invested in Stock A and $3,550 invested in Stock B. If the expected returns on these stocks are 10 percent and 17 percent, respectively, what is the expected return on the portfolio? (Do not round your intermediate calculations.) A. 15.04% B. 13.50% C. 14.32% D. 12.68% E. 14.61%

You own a portfolio that has $1,500 invested in Stock A and $500 invested in Stock...

You own a portfolio that has $1,500 invested in Stock A and $500 invested in Stock B. If the expected returns are 10% for Stock A and 14% for Stock B, what is the expected return on the portfolio?

Question