Question

Suppose you invest $3,000 in stock x with a 4% projected return and $7,000 in stock y with a 6% projected return. what is the projected return from your investment

Answer 1

To find the projected return from your investment, calculate the weighted average of the projected returns of each stock by multiplying the amount invested in each stock by its projected return and dividing by the total amount invested. Add the weighted returns together to get the projected return.

Step-by-step explanation:

To find the projected return from your investment, you need to calculate the weighted average of the projected returns of each stock.

First, multiply the amount invested in stock X ($3,000) by the projected return (4%) and divide it by the total amount invested ($10,000). This will give you the weighted return of stock X.

Then, multiply the amount invested in stock Y ($7,000) by the projected return (6%) and divide it by the total amount invested ($10,000). This will give you the weighted return of stock Y.

Finally, add the weighted returns of stock X and stock Y together to get the projected return from your investment.

Answer 2

The total projected return from an investment of $3,000 in stock X with a 4% return and $7,000 in stock Y with a 6% return is $540.

Step-by-step explanation:

To calculate the projected return from the investment in stock X and stock Y, we will compute the expected return for each stock separately and then combine them to get the total projected return from the entire investment.

Calculating Projected Return for Stock X:

Investment in stock X = $3,000
Projected return rate for stock X = 4%

Projected return from stock X = Investment in stock X × Projected return rate
Projected return from stock X = $3,000 × 4% = $3,000 × 0.04 = $120

Calculating Projected Return for Stock Y:

Investment in stock Y = $7,000
Projected return rate for stock Y = 6%

Projected return from stock Y = Investment in stock Y × Projected return rate
Projected return from stock Y = $7,000 × 6% = $7,000 × 0.06 = $420

Total Projected Return:

Total projected return = Projected return from stock X + Projected return from stock Y
Total projected return = $120 + $420 = $540

The projected return from your investment in both stock X and Y is $540.