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You own three stocks: 1,000 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5,000 shares of Goldman Sachs Group. The current share prices
You own three stocks: 1,000 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5,000 shares of Goldman Sachs Group. The current share prices and expected
returns of Apple, Cisco, and Goldman are, respectively, $125, $19, $120, and 12%, 10%, 10.5%. Assume that both Apple and Cisco go up by $5 and Goldman goes down by $10. What are the new portfolio weights??
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