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You own three stocks: 6 0 0 shares of Apple Computer, 1 0 , 0 0 0 shares of Cisco Systems, and 5 , 0
You own three stocks: shares of Apple Computer, shares of Cisco Systems, and shares of ColgatePalmolive. The current share prices and expected returns of Apple, Cisco, and ColgatePalmolive are, respectively, $ $ $ and
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 $ Cisco rises by $ and ColgatePalmolive falls by $ 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?
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