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

Finance Feb 13, 2021

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

Expert Solution

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

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