Question

You own the following portfolio of stocks. What is the portfolio weight of Stock C? Stock...

You own the following portfolio of stocks. What is the portfolio weight of Stock C?

Stock Number of Shares Price per Share
A 120 $ 25
B 610 $ 21
C 400 $ 45
D 200 $ 44
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1

Value of Stock A in Portfolio = Number of Shares * Stock Price = 120 * $25 = $3,000

Value of Stock B in Portfolio = Number of Shares * Stock Price = 610 * $21 = $12,810

Value of Stock C in Portfolio = Number of Shares * Stock Price = 400 * $45 = $18,000

Value of Stock D in Portfolio = Number of Shares * Stock Price = 200 * $44 = $8,800

Portfolio weight of Stock C = Value of Stock C in Portfolio / (Value of Stock A in Portfolio + Value of Stock B in Portfolio + Value of Stock C in Portfolio + Value of Stock D in Portfolio)

Portfolio weight of Stock C = $18,000 / ($3,000 + $12,810 + $18,000 + $8,800)

Portfolio weight of Stock C = 0.422 or 42.2%

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
24. You own the following portfolio of stocks. What is the portfolio weight of Stock C?...
24. You own the following portfolio of stocks. What is the portfolio weight of Stock C? Stock Number of Shares Price per Share A 650 $15.82 B 320 $11.09 C 400 $ 39.80 D 100 $ 7.60 52.18 percent 53.86 percent 53.41 percent 51.09 percent 52.65 percent
You have compiled the following information on your investments. Stock # of Shares Price Per Share...
You have compiled the following information on your investments. Stock # of Shares Price Per Share Expected Return A 100 21 12.5% B 200 37 3.6% C 300 42 9.5% D 400 16 20.6% A. What is the value for each stock you hold? (Shares * Price) B. What are the weights for stocks A-D in this portfolio? C. What is the expected return for this portfolio?
The following information is available for two stocks: Stock Shares Price per share Expected Return Standard...
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...
1. You have a portfolio of two stocks that has a total value of $28,000. The...
1. You have a portfolio of two stocks that has a total value of $28,000. The portfolio is 40 percent invested in Stock J. If you own 185 shares of Stock K, what is Stock K's share price? 2. What are the portfolio weights for a portfolio that has 200 shares of stock A that sell for $97 per share and 175 shares of Stock B that sell for $134 per share? (Do not round intermediate calculations and round your...
You are given the following information about the stocks in a two-stock portfolio Stock Return Portfolio...
You are given the following information about the stocks in a two-stock portfolio Stock Return Portfolio Weight Standard Deviation Blue Hotel Inc. 22% 45% 9% Joys Food Inc. 25% 55% 11% The correlation coefficient between the two stocks is 0.5. Using the information above, calculate the following: The expected return of the portfolio, The variance of the portfolio, The standard deviation of the portfolio.
You own three stocks: 600 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5,000...
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...
Collette has four different stocks in her portfolio. She owns 79 shares of Stock A with...
Collette has four different stocks in her portfolio. She owns 79 shares of Stock A with a market price of $41.00, 137 shares of Stock B which is currently at $66.00 per share, 163 shares of Stock C which is listed at $87.00 per share, and 259 shares of Stock D, with a price of $75.00 per share. If the betas and returns for the four stocks are as follows, What is Collette ’s portfolio beta and portfolio return? Stock...
Ellen has three stocks in her portfolio. She owns 200 shares of Stock A, currently selling...
Ellen has three stocks in her portfolio. She owns 200 shares of Stock A, currently selling at $28.00 per share, 150 shares of Stock B, priced at $56.00 per share, and 75 shares of Stock C, which is worth $36.00 per share. If the betas of the three stocks are as follows, what is Ellen’s portfolio beta? ______________ Beta Stock A 1.38 Stock B .96 Stock C 1.19
"What is the Portfolio Return if you hold positions in the following stocks displayed in this...
"What is the Portfolio Return if you hold positions in the following stocks displayed in this format (Current price per share, # of shares in our portfolio, Return for each stock): (FIN340 Company $31.80, 50 shares, 15.5% Return); (ABC Company $21.50, 25 shares, -16.0% Return); (DEF Company $7.25, 80 shares, -14.0% Return); and (XYZ Company $19.25, 130 shares, 16.4% Return) ;" 9.0% 9.4% 0.5% 1.9% 10.3% 8.5% Insufficient data provided to calculate this statistic
Assume that there are two stocks in the world (STOCK A and STOCK B) as presented...
Assume that there are two stocks in the world (STOCK A and STOCK B) as presented below: STOCK                                                                                                                                   P0                    Q0                    P1                   Q1                    A                                                                                                                    35                    200                  29.75               200 B                                                                                                                                            30                    100                  27                    100      P0 represents the price per share at time period 0 (today). Q0 represents the number of shares outstanding at time period 0 (today). P1 represents the price per share at time period 1 (one year from today). Q1 represents the number of shares outstanding at time period 1 (one year from today). Assume that you have a total of $65...
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT