Question
Stock X had a return of 7.00% last year. Stocks Y and Z earned -3.00% and 11.10% respectively. The following table shows 3 portfolios: A,
Stock X had a return of 7.00% last year. Stocks Y and Z earned -3.00% and 11.10% respectively. The following table shows 3 portfolios: A, B, and C. What is the portfolio return under the following scenarios?
| Stock | Return | Weights A | Weights B | Weights C |
|---|---|---|---|---|
| X | 7.00% | 1/3 | 0.5 | 0.25 |
| Y | -3.00% | 1/3 | 0.3 | 0.4 |
| Z | 11.10% | 1/3 | 0.2 | 0.35 |
What is the portfolio return when the stocks are equally weighted in portfolio A?
What is the portfolio return for portfolio B?
What is the portfolio return for portfolio C?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
To calculate the portfolio return we need to multiply the return of each stock by its corresponding ...
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Step: 2
Step: 3
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Macroeconomics Principles and Applications
Authors: Robert e. hall, marc Lieberman
5th edition
1111397465, 9781439038970, 1439038988, 978-1111397463, 143903897X, 9781439038987, 978-1133265238
