You have a portfolio with the following: Stock Number of Shares Price Expected Return W 1,000 $ 57 14% X 900 34 18 Y 650 70 16 Z 875 55 17 What is the expected return of your portfolio

Expected return on portfolio = 15.97%

Explanation:

The expected return on the portfolio is the weighted average return of all the different stocks making up the portfolio. The weight of the individual stock would be the relative amount invested in each stock as a proportion of the total fund invested.

Total value of the portfolio

                                    $

W=  (1,000× $ 57) = 57,000  

X =  (900 × 34 ) =    30,600

Y =  (650× 70) =     45,500

Z =  875 55 =        48,125

Total           =        181.225

Total fund value =  181.225

Expected return on Portfolio

(57000 / 181,225) × 14%    + (30600 /181,225)× 18%  + (45500 /  181,225)× 16%

(48,125 /181,225)× 17% =15.97%

Expected return on portfolio = 15.97%

answer; /// i believe that the correct answer is (b) money set aside for emergency repairs;

a manufacturer of printed circuit boards uses exponential smoothing with trend to forecast monthly demand of its product. at the end of december, the company wishes to forecast sales for january. the estimate of trend through november has been 200 additional boards sold per month. average sales have been around 1000 units per month. the demand for december was 1100 units. the company uses α = 0.20 and β = 0.10. make a forecast including trend for the month of january.