Question

An investor owns $4,000 of Adobe Systems stock, $9,000 of Dow Chemical, and $3,000 of Office...

An investor owns $4,000 of Adobe Systems stock, $9,000 of Dow Chemical, and $3,000 of Office Depot. What are the portfolio weights of each stock? (Round your answers to 4 decimal places.)
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1


Stocks

Value

Weights

Weights in % form

Value/Total Value

Adobe system

            4,000.00

       0.2500

25.0000%

=4000/16000

Dow Chemical

            9,000.00

       0.5625

56.2500%

=9000/16000

Office depot

            3,000.00

       0.1875

18.7500%

=3000/16000

Total Value

16,000.00

        1.00

100%
0 0
Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Log In

Sign Up

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
The past five monthly returns for PG&E are ?3.29 percent, 4.18 percent, 3.89 percent, 6.65 percent,...
The past five monthly returns for PG&E are ?3.29 percent, 4.18 percent, 3.89 percent, 6.65 percent, and 3.70 percent. What is the average monthly return? (Round your answer to 3 decimal places.) An investor owns $6,000 of Adobe Systems stock, $9,000 of Dow Chemical, and $5,000 of Office Depot. What are the portfolio weights of each stock? (Round your answers to 4 decimal places.)
The investor decides to diversify by investing $2,000 in Gryphon stock and $3,000 in Royal stock,...
The investor decides to diversify by investing $2,000 in Gryphon stock and $3,000 in Royal stock, which has an expected return of 8% and a standard deviation of 13.8%. The correlation coefficient for the two stocks' returns is 0.3. Calculate the expected return and standard deviation of the portfolio. Round your answers to 2 decimal places. E(r)= 7.2 std. Dev. = 8.6 Enter your answers below. E(rp) =
Assume Stocks A and B have the following characteristics: Stock Expected Return Standard Deviation A 8.3%...
Assume Stocks A and B have the following characteristics: Stock Expected Return Standard Deviation A 8.3% 32.3% B 14.3% 61.3% The covariance between the returns on the two stocks is .0027. a. Suppose an investor holds a portfolio consisting of only Stock A and Stock B. Find the portfolio weights, XA and XB, such that the variance of her portfolio is minimized. (Hint: Remember that the sum of the two weights must equal 1.) (Do not round intermediate calculations and...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2014 (22.20 %) (16.50 %) 2015 26.75 17.90 2016 14.00 36.90 2017 (3.25 ) (14.60 ) 2018 31.75 23.35 Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A:   % Stock B:   % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B....
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2014 (20.90 %) (13.60 %) 2015 27.75 25.40 2016 13.50 39.10 2017 (4.75 ) (5.10 ) 2018 25.50 -4.70 Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A:   % Stock B:   % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B....
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2014 (21.20 %) (12.80 %) 2015 34.00 16.00 2016 12.50 34.30 2017 (1.75 ) (14.20 ) 2018 27.50 27.75 Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A:   % Stock B:   % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B....
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2013 - 23.90% - 16.20% 2014 30.75 15.00 2015 15.25 20.90 2016 - 1.00 - 9.10 2017 31.50 42.00 Calculate the average rate of return for stock A during the period 2013 through 2017. Round your answer to two decimal places. _______ % Calculate the average rate of return for stock B during the period 2013 through 2017. Round your answer to...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Return rB 2013 -22.70% -15.00% 2014 23.00 16.40 2015 10.25 36.00 2016 -5.75 -9.30 2017 33.50 10.20 Calculate the average rate of return for Stock A during the period 2013 through 2017. Round your answer to two decimal places.______% Calculate the average rate of return for Stock B during the period 2013 through 2017. Round your answer to two decimal places.______% Assume that someone...
An investor owns a stock. Daily change in stock price, ∆S, has the standard deviation of...
An investor owns a stock. Daily change in stock price, ∆S, has the standard deviation of 13. To hedge risks of the stock price, the investor considers cross-hedging using one of the following futures contracts. The following table shows each futures contract’s standard deviation σF of futures price change, ∆F, and the correlation coefficient ρ between ∆S and ∆F. Futures contract σF ρ A 22 0.7 B 20 0.9 C 15 0.6 D 10 0.8 If the investor shorts h...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's...
Stocks A and B have the following historical returns: Year Stock A's Returns, rA Stock B's Returns, rB 2014 (22.80%) (12.90%) 2015 28.75 18.70 2016 17.50 30.70 2017 (2.25) (14.20) 2018 28.50 27.40 Calculate the average rate of return for each stock during the period 2014 through 2018. Round your answers to two decimal places. Stock A: ??? % Stock B: ??? % Assume that someone held a portfolio consisting of 50% of Stock A and 50% of Stock B....
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT