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Calculate the weight of a stock in a portfolio. Imagine you hold 4 stocks in your portfolio. You have $17,946 invested in Microsoft, $19,293 invested
Calculate the weight of a stock in a portfolio. Imagine you hold 4 stocks in your portfolio. You have $17,946 invested in Microsoft, $19,293 invested in IBM, $5,470 in GE and $12,952 in ExxonMobile What percentage of your portfolio is held in GE? Give your answer as a percent (example 53% should be entered as 53) QUESTION 10 Portfolio Performance Consider a portfolio with $299 invested in Stock A, $201 invested in Stock Band $300 invested in Stock C. The probability of a Weak Economy is 0.1, the probability of a Strong Economy is 0.1, and the probability of an Average Economy is 0.8 Stock A pays 3% in a Weak Economy, -2.4% in a Strong Economy, and -6.5% in an Average Economy Stock B pays 3% in a Weak Economy, 9.4% in a Strong Economy, and 5.5% in an Average Economy Stock C pays -2.3% in a Weak Economy, 3.7% in a Strong Economy, and 1.7% in an Average Economy Read the information above carefully. First create a table that summarizes the information above Then solve for the performance of the Portfolio when the economy is Strong (hint: you only need the weight of each stock and the returns in a strong economy) Include your answer as a percentage to two decimals
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