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You own a portfolio which consists of three stocks: 300 shares of Apple Computer, 8000 shares of Cisco Systems, and 5000 shares of Johnson &
You own a portfolio which consists of three stocks: 300 shares of Apple Computer, 8000 shares of Cisco Systems, and 5000 shares of Johnson & Jonhson. The current share prices and expected returns of Apple, Cisco, and J&J are, respectively, USD 467, USD 22, USD 109 and 12%, 10%, 8%. Question 1. (1 point) What is the portfolio weight of Apple Computer in your portfolio? Question 2. (1 point) What is the expected return of your portfolio? Question 3. (1 point) Suppose the price of Apple stock goes up by USD 25, Cisco rises by USD 5, and J&J falls by USD 13. What is the new portfolio weight of Apple Computer in your portfolio? Question 4. (1 point) Assuming the stocks expected returns remain the same, what is the expected return of the portfolio at the new prices
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