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your portfolio? 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
your portfolio? 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, $547, $18, $95 and 12%, 10%, 8%. a. What are the portfolio weights of the three stocks in b. What is the expected return of your portfolio? c. Suppose the price of Apple stock goes up by $20, Cisco rises by $7, and Colgate-Palmolive falls by $14. 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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