Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

you own three stocks: 600 shares of apple computer, 10,000 shares of cisco systems, and 5000 shares of colgate -palmolive the current share prices and

you own three stocks: 600 shares of apple computer, 10,000 shares of cisco systems, and 5000 shares of colgate -palmolive the current share prices and expected returns of apple, cisco, and colgate-Palmolive are, respectively, $515,$15,$95 and 12%, 10%, 8%.

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 $21, cisco rises by$7, and Colgate-Palmolive falls by $13. 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?

Needed ASAP in excel spreadsheet. which can be used for similar problems.

time now

12:11 AM EST 02/06/2017

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Corporate Finance

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Gordon Roberts, Hamdi Driss

8th Canadian Edition

01259270114, 9781259270116

More Books

Students also viewed these Finance questions

Question

What are the various types of physical ability? LO1.

Answered: 1 week ago