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Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below. Stock Golden Seas Jacobs and Jacobs MAG PDJB Price/Share ($) 15
Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below. Stock Golden Seas Jacobs and Jacobs MAG PDJB Price/Share ($) 15 23 49 7 Number of Shares Outstanding (millions) 1.4 1.54 27.25 11.97 Enter the portfolio weight below: (Round to two decimal places.) Stock Golden Seas % of Total Value (portfolio weight) % You hear on the news that the S&P 500 was down 2.2% today relative to the risk-free rate (the market's excess return was 2.2%). You are thinking about your portfolio and your investments in Zynga and Proctor and Gamble. a. If Zynga's beta is 1.4, what is your best guess as to Zynga's excess return today? b. If Proctor and Gamble's beta is 0.6, what is your best guess as to P&G's excess return today? a. If Zynga's beta is 1.4, what is your best guess as to Zynga's excess return today? Zynga's excess return today is %. (Round to one decimal place.)
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