Question

A portfolio has 80 shares of Stock A that sell for $42 per share and 100...

A portfolio has 80 shares of Stock A that sell for $42 per share and 100 shares of Stock B that sell for $26 per share.
Required:
(a) What is the portfolio weight of Stock A?

  

(b) What is the portfolio weight of Stock B?
Business   Finance   
0 0
Add a commentTranscribed image text
Next >

Homework Answers

Answer #1


Total value of A = 80 shares x $42 per share = 80 x 42 = $3360

Total value of B = 100 shares x $26 per share = 100 x 26 = $2600

Total value of A&B = Total value of A + Total Value of B = 3360 + 2600 = $5960

-----

Weight of A = Total value of A / Total value of A&B

Weight of A = 3360/5960

Weight of A = 0.563758389 or 0.56

.

Weight of B = Total value of B / Total value of A&B

Weight of B = 2600 / 5960

Weight of B = 0.436241611 or 0.44

Note: Please apply rounding as per your requirement because it is not mentioned in the question

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
portfolio has 100 shares of shares of Stock A that sell for $20 per share and...
portfolio has 100 shares of shares of Stock A that sell for $20 per share and 120 shares of stock B that sell for $30 per share. If the expected returns on Stock A and B are 5% and 10%, respectively, what is the expected return on the portfolio?         Multiple Choice 1.8%                           8.2% 6.8%                 35.7%
A portfolio has 100 shares of shares of Stock A that sell for $20 per share...
A portfolio has 100 shares of shares of Stock A that sell for $20 per share and 120 shares of stock B that sell for $30 per share. If the expected returns on Stock A and B are 5% and 10%, respectively, what is the expected return on the portfolio?         Multiple Choice 1.8%                           8.2% 6.8%                 35.7%
What are the portfolio weights for a portfolio that has 250 shares of Stock A that...
What are the portfolio weights for a portfolio that has 250 shares of Stock A that sell for $35 per share and 145 shares of Stock B that sell for $26.50 per share?
3) Suppose you buy 100 shares of Scotia Bank at $85 per share, and 80 shares...
3) Suppose you buy 100 shares of Scotia Bank at $85 per share, and 80 shares of CIBC at $75 per share. If Scotia Bank’s stock goes up to $88.50 per share and CIBC's stock goes up to $77 per share, what is your portfolio return? A) 2% B) 0% C) 3.5% D) 3% E) 4.5%
A company at present has 250,000 shares of stock outstanding that sell for $15 per share....
A company at present has 250,000 shares of stock outstanding that sell for $15 per share. Assuming no market imperfection or tax effects exist. if the company has 10% stock dividend announcement? a) Determine the new number of shares outstanding after the dividend announcement? b) what is the new stock price per share after the stock dividend announcement?
A company purchased a 100 shares of its common stock at $54 per share it then...
A company purchased a 100 shares of its common stock at $54 per share it then sells 25 of the Treasury shares at 68 per share the entry to sell the Treasury stock includes a
Warren Corporation’s stock sells for $42 per share. The company wants to sell some semi-annual coupon...
Warren Corporation’s stock sells for $42 per share. The company wants to sell some semi-annual coupon payment bond with 6 years maturity at $1,000 today. Each bond would have 80 warrants attached to it, each exercisable into one share of stock at an exercise price of $47. The firm’s straight bonds yield to maturity is 8%. Each warrant is expected to have a market value of $2.25 given that the current stock sells for $42. What annual coupon rate must...
You short-sell 400 shares of XYZ Co., now selling for $100 per share. You post the...
You short-sell 400 shares of XYZ Co., now selling for $100 per share. You post the 50% margin required on the short sale. If the share price falls to $90 per share and you close your short position, what is your holding-period return on the transaction? (Assume the stock pays no dividends, and there is no interest paid on the posted margin.)
ABC Company currently has 310,000 shares of stock outstanding that sell for $94 per share. Assume...
ABC Company currently has 310,000 shares of stock outstanding that sell for $94 per share. Assume no market imperfections or tax effects exist. Determine the share price AND new number of shares outstanding in each of the following independent situations: (Do not round intermediate calculations. Round your price per share answers to 2 decimal places, e.g., 32.16, and shares outstanding answers to the nearest whole number, e.g., 32.) a. ABC has a five-for-three stock split. b. ABC has a 11...
Air Taxi, Inc. currently has 576,000 shares of stock outstanding that sell for $97 per share....
Air Taxi, Inc. currently has 576,000 shares of stock outstanding that sell for $97 per share. Assuming no market imperfections or tax effects exist, what will the share price be after: BTC has a three for one stock split? BTC has a 18 percent stock dividend? BTC has a 51.6 percent stock dividend? BTC has a three-for-six reverse stock split? Determine the new number of shares outstanding in parts (1) through (4).
ADVERTISEMENT
Need Online Homework Help?

Get Answers For Free
Most questions answered within 1 hours.

Ask a Question
ADVERTISEMENT