SOLUTION: Stock X, Stock Y, and the market have had the following returns over the past four years. Year Market X Y 1999 11% 10% 12% 2000 7% 4% -3% 2001 17% 12% 21%

Question 1162844: Stock X, Stock Y, and the market have had the following returns over the past four years.
Year
Market
X
Y
1999
11%
10%
12%
2000
7%
4%
-3%
2001
17%
12%
21%
2002
-3%
-2%
-5%

The risk-free rate is 7 percent. The market risk premium is 5 percent. What is the required rate of return for a portfolio that consists of $14,000 invested in Stock X and $6,000 invested in Stock Y rates of return?
Answer by solver91311(24713) (Show Source): You can put this solution on YOUR website!

Finance question requiring specialized knowledge in financial terms, relationships, and formulas. Inappropriate for a general mathematics help website.

John

My calculator said it, I believe it, that settles it

RELATED QUESTIONS
You would like to start saving for retirement. Assuming you are now 50 years old and you... (answered by rfer)

how do i turn this word problem into a linear system of equations? and as a matrix... (answered by stanbon)

can someone help me please? in the year 1999 juanita made $23,272 in the stock market. (answered by Alan3354)

Suppose you invested $2500 in the stock market 2 years ago. During the first year, the... (answered by jorel555)

Martin purchased company ABC's stock and invested the balance in his money market... (answered by stanbon)

Maggie invests x dollars in the stock market. During the first month, she loses $500.... (answered by Fombitz)

Stock A has an expected return of 10 percent and a beta of 1.0. Stock B has a beta of... (answered by solver91311)

Stock A has an expected return of 10 percent and a beta of 1.0. Stock B has a beta of... (answered by ikleyn)