Posted by **John** on Tuesday, October 28, 2008 at 11:33am.

Please Help.

Suppose that a portfolio consists of 3 securities (1,2,3). Expected rates of return are: 5%, 9%, 14% of the 3 securities, respectively.

(1) Find the expected rate of return on each of the two portfolios of these securities:

Portfolio A where w1=w2=w3

Portfolio B where w1=w2 and w2=2w3

(I solved this)

(2) Assume both portfolios have the same risk (10%) which one would you choose?

(I solved this)

(3) Assume your portfolio amount or wealth is $10000, how much have you invested in each of the three securities in your chosen portfolio.

(I solved this)

(4) Find the expected total cash flow and expected net cash flow of the portfolio at the end of the period.

(Don't have formula for this, cannot solve. If someone can help me out, please lead me in the right direction)

## Answer this Question

## Related Questions

- Finance - Please Help. Suppose that a portfolio consists of 3 securities (1,2,3...
- Finance - A portfolio consists of three stocks. The weight, expected rate of ...
- finance - The expected return on the market is 12% and the risk free rate is 7...
- Finance - Consider the following two securities X and Y X y Return- 20.0% Return...
- Finance - If you invest 30% of your funds in Lucent stock, with an expected rate...
- Finance - a share of preferred stock of MXT LTD. is expected to pay 1.0 per ...
- Basic Finance Risk vs Return - Please check and correct my answers. Investors ...
- FINANCIAL ACCOUNTING - A portfolio manager is managing a $10 million portfolio. ...
- Financial analysis-Need by tomorrow please!!!!!!!! - If the risk-free rate is 6 ...
- fiance - You want to create a $75,000 portfolio comprised of two stocks plus a ...

More Related Questions