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Homework answers / question archive / Given the following market values of stocks in your portfolio and their expected rates of return, what is the expected rate of return for your common stock rtfolio? Stock Starbucks Intel Qualcomm Blackberry Disney Tesla Home Depot Halliburton Market Value (S Mil
Given the following market values of stocks in your portfolio and their expected rates of return, what is the
expected rate of return for your common stock rtfolio?
Stock Starbucks Intel Qualcomm Blackberry Disney Tesla Home Depot Halliburton Market Value (S Mil.) 15,000 10,000 15,000 23,000 35,000 17,000 10,000 25,000 Expected return (%) () 08 0.23 0.35 -0.08 0.56 0.46 0.12 0.04
| Computation of Expected Rate of Return: | ||||
| Stock | Market Values | Weight | Expected Returns | Weighted Expected Return |
| Starbucks | 15,000 | 0.10 | 0.08 | 0.01 |
| Intel | 10,000 | 0.07 | 0.23 | 0.02 |
| Qualocomm | 15,000 | 0.10 | 0.35 | 0.04 |
| Blackberry | 23,000 | 0.15 | -0.08 | -0.01 |
| Disney | 35,000 | 0.23 | 0.56 | 0.13 |
| Tesla | 17,000 | 0.11 | 0.46 | 0.05 |
| Home Depot | 10,000 | 0.07 | 0.12 | 0.01 |
| Halliburton | 25,000 | 0.17 | 0.04 | 0.01 |
| Total Value | 150,000 | Total Expected Rate of Return = | 0.24 | |
Portfolio Return = Respective Return*Respective Weight
