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PLEASE COMPLETE ALL 9 PARTS Given the following information,__, construct a value-weighted portfolio of the four stocks if you have $495,000 to invest. That is,
PLEASE COMPLETE ALL 9 PARTS
Given the following information,__, construct a value-weighted portfolio of the four stocks if you have $495,000 to invest. That is, how much of your $495,000 would you invest in each stock? The total value of the market is $ million. (Round to the nearest million.) Data table (Click on the following icon in order to copy its contents into a spreadsheet.) Given the following information,__, construct a value-weighted portfolio of the four stocks if you have $510,000 to invest. That is, how much of your $510,000 would you invest in each stock? To calculate the total value of the market, use the following formula: Total value = OGG market cap + HNL market cap + KOA market cap + LIH market cap of the market Therefore, Total value =$55 million +$80 million +$25 million +$15 million =$175 million of the market The total value of the market is $175 million. To calculate the portfolio weight, use the following formula: Data table Portfolio weight =TotalvalueofthemarketMarketcap (Click on the following icon in order to copy its contents into a spreadsheet.) Therefore, Portfolio weight OGG=$175million$55million=0.3143=31.43% Portfolio weight HNL=$175million$80million=0.4571=45.71% Portfolio weight KOA=$175million$25million=0.1429=14.29% Portfolio weight LIH=$175million$15million=0.0857=8.57% To calculate the amount to invest in each stock, use the following formula: Amount to invest = Total investment Portfolio weight Therefore, Amount to invest OGG=$510,0000.3143=$160,293 Amount to invest HNL=$510,0000.4571=$233,121 Amount to invest KOA=$510,0000.1429=$72,879 Amount to invest LIH=$510,0000.0857=$43,707Step by Step Solution
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