Question

You own three stocks: 600 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5,000 shares of Colgate-Palmolive. The current share prices and expected returns ofApple, Cisco, and Colgate-Palmolive are, respectively, $ 506 $ 25 $ 100 and 12 % 10 % 8 % a. What are the portfolio weights of the three stocks in your portfolio? b. What is the expected return of your portfolio? c. Suppose the price of Apple stock goes up by $ 22 Cisco rises by $ 7 and Colgate-Palmolive falls by $ 11 What are the new portfolio weights? d. Assuming the stocks' expected returns remain the same, what is the expected return of the portfolio at the new prices? a. What are the portfolio weights of the three stocks in your portfolio? The portfolio weight of Apple Computer is %. (Round to two decimal places.)

Answer #1

Taylor has a portfolio consisting of 100 shares of Koch, 600
shares of Apple, and 300 shares of Walmart. The current market
prices for these 3 stocks are $276/share, $21/share, and $101/share
respectively; the returns over the past year for these stocks were
86%, -20%, and -23% respectively; and the Beta's for each is 1.17,
1.51, and 1.10 respectively.
What are the portfolio weightings for each stock?
What was my portfolio return over the past year?

The following information is available for two stocks: Stock
Shares Price per share Expected Return Standard Deviation A 500 $40
14% 18% B 400 $25 21% 22% You are fully invested in the two stocks.
The correlation coefficient between the two stock returns is
.80
a. Compute the weights of the two stocks in your portfolio.
b. Compute the portfolio expected return.
c. Compute the portfolio standard deviation.
d. You consider selling 250 shares of stock A, and buy with...

Consider a $45,000 portfolio consisting of three stocks. Their
values and expected returns are as follows:
Stock
Investment
Expected
Return
A
$ 5,000
14
%
B
20,000
8
C
20,000
15
What is the weighted-average expected return on the portfolio?
Round your answer to one decimal place.

You own a portfolio that has 5,000 shares of stock A, which is
priced at 13 dollars per share and has an expected return of 12.5
percent, and 2,700 shares of stock B, which is priced at 22.1
dollars per share and has an expected return of 7.05 percent. The
risk-free return is 3.91 percent and inflation is expected to be
1.27 percent. What is the risk premium for your portfolio? Answer
as a rate in decimal format so that...

You are considering how to invest part of your retirement
savings.You have decided to put $500,000 into three? stocks: 55 %
of the money in GoldFinger? ($22?/share), 15% of the money in
Moosehead? (currently $78?/share), and the remainder in Venture
Associates? (currently $10?/share). Suppose GoldFinger stock goes
up to $40?/share, Moosehead stock drops to $65?/share, and Venture
Associates stock rises to $16 per share.
a. What is the new value of the? portfolio?
b. What return did the portfolio? earn?...

You are considering how to invest part of your retirement
savings.You have decided to put
$600,000
into three stocks:
53%
of the money in GoldFinger (currently
$24/share),
5%
of the money in Moosehead (currently
$90/share),
and the remainder in Venture Associates (currently
$2/share).
Suppose GoldFinger stock goes up to
$40/share,
Moosehead stock drops to
$52/share,
and Venture Associates stock
rises
to
$19
per share.
a. What is the new value of the portfolio?
b. What return did the portfolio earn?...

You are considering how to invest part of your retirement
savings.You have decided to put $600,000 into three stocks: 55%of
the money in GoldFinger (currently 27/share), 24% of the money in
Moosehead (currently $ 80 /share), and the remainder in Venture
Associates (currently $3/share). Suppose GoldFinger stock goes up
to$43/share, Moosehead stock drops to $50/share,and Venture
Associates stock rises to $11 per share.
a. What is the new value of the portfolio?
b. What return did the portfolio earn?
c....

You are considering how to invest part of your retirement
savings.You have decided to put $500000 into three stocks: 67% of
the money in GoldFinger (currently $25 /share), 22% of the money
in Moosehead (currently $80/share), and the remainder in Venture
Associates (currently $7/share). Suppose GoldFinger stock goes up
to $38 /share, Moosehead stock drops to $60 /share, and Venture
Associates stock rises to $15 per share. a. What is the new value
of the portfolio? b. What return did...

You are considering how to invest part of your retirement
savings.You have decided to put $300,000 into three? stocks: 66% of
the money in GoldFinger? (currently $19?/share), 13% of the money
in Moosehead? (currently $97?/share), and the remainder in Venture
Associates? (currently $10?/share). Suppose GoldFinger stock goes
up to $40?/share, Moosehead stock drops to $57?/share, and Venture
Associates stock rises to $19 per share.
a. What is the new value of the? portfolio?
b. What return did the portfolio? earn?...

You are considering how to invest part of your retirement
savings.You have decided to put $600,000 into three? stocks: 64% of
the money in GoldFinger? (currently $22?/share), 22% of the money
in Moosehead? (currently $93?/share), and the remainder in Venture
Associates? (currently $2?/share). Suppose GoldFinger stock goes up
to $36?/share, Moosehead stock drops to $68?/share, and Venture
Associates stock rises to $3 per share.
a. What is the new value of the? portfolio?
b. What return did the portfolio? earn?...

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