Question
You own threestocks: 600 shares of AppleComputer, 10,000 shares of CiscoSystems, and 5,000 shares ofColgate-Palmolive. The current share prices and expected returns ofApple, Cisco, andColgate-Palmolive
You own threestocks: 600 shares of AppleComputer, 10,000 shares of CiscoSystems, and 5,000 shares ofColgate-Palmolive. The current share prices and expected returns ofApple, Cisco, andColgate-Palmolive are,respectively, $500, $24, $96 and 12%, 10%, 8%.
a. What are the portfolio weights of the three stocks in yourportfolio?
b. What is the expected return of yourportfolio?
c. Suppose the price of Apple stock goes up by $30, Cisco rises by $4, andColgate-Palmolive falls by $11. What are the new portfolioweights?
d. Assuming thestocks' expected returns remain thesame, what is the expected return of the portfolio at the newprices?
a. What are the portfolio weights of the three stocks in yourportfolio?
The portfolio weight of Apple Computer is
nothing
%. (Round to two decimalplaces.)
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