Question
You own three stocks: 1000 shares of Apple Computer, 10000 shares of Cisco Systems, and 5000 shares of Goldman Sachs. The current share prices and
You own three stocks: 1000 shares of Apple Computer, 10000 shares of Cisco Systems, and 5000 shares of Goldman Sachs. The current share prices and expected returns of Apple, Cisco, and Goldman Sachs are, respectively, $ 156, $ 23, $ 129 and 12 %, 10 %, 10.5 %. a. What are the portfolio weights of the three stocks in your portfolio? b. What is the expected return of your portfolio? c. Suppose the price of Apple stock goes up by $ 4, Cisco rises by $ 4, and Goldman Sachs falls by $ 12. What are the new portfolio weights? d. Assuming the stocks' expected returns remain the same, what is the expected return of the portfolio at the new prices? a. What are the portfolio weights of the three stocks in your portfolio? The portfolio weight of Apple Computer is nothing%. (Round to one decimal place.) The portfolio weight of Cisco Systems is nothing%. (Round to one decimal place.) The portfolio weight of Goldman Sachs is nothing%. (Round to one decimal place.) b. What is the expected return of your portfolio? The expected return of the portfolio is nothing%. (Round to two decimal places.)
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