Question
In: Finance
You own three stocks: 600 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5,000...
You own three stocks: 600 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5,000 shares of Colgate-Palmolive. The current share prices and expected returns of Apple, Cisco, and Colgate-Palmolive are, respectively, $463, $22, $101 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 $22, Cisco rises by $5, and Colgate-Palmolive falls by $10. 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?
Solutions
Expert Solution
Please refer to below spreadsheet for calculation and answer. Cell reference also provided.
Cell reference -
Hope this will help, please do comment if you need any further explanation. Your feedback would be appreciated.
jeff jeffy answered 6 months agoRelated Solutions
You own three stocks: 600 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5,000...
You own three stocks: 600 shares of Apple Computer, 10,000
shares of Cisco Systems, and 5,000 shares of Colgate-Palmolive. The
current share prices and expected returns of Apple, Cisco, and
Colgate-Palmolive are, respectively, $536, $25, $105 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 $30, Cisco rises by $5,
and Colgate-Palmolive falls...
You own three stocks: 600 shares of Apple Computer, 10 comma 000 shares of Cisco Systems,...
You own three stocks: 600 shares of Apple Computer, 10 comma
000 shares of Cisco Systems, and 5 comma 000 shares of
Colgate-Palmolive. The current share prices and expected returns
of Apple, Cisco, and Colgate-Palmolive are, respectively, $
537, $ 24, $ 93 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...
You own three stocks: 1000 shares of Apple Computer, 10000 shares of Cisco Systems, and 5000...
You own three stocks: 1000 shares of Apple Computer, 10000
shares of Cisco Systems, and 5000 shares of Goldman Sachs. The
current share prices and expected returns of Apple, Cisco, and
Goldman Sachs are, respectively, $ 156, $ 23, $ 129 and 12 %,
10 %, 10.5 %. 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...
You own three stocks: 600600 shares of Apple Computer, 10 comma 00010,000 shares of Cisco Systems,...
You own three stocks:
600600
shares of Apple Computer,
10 comma 00010,000
shares of Cisco Systems, and
5 comma 0005,000
shares of Colgate-Palmolive. The current share prices and
expected returns of Apple, Cisco, and Colgate-Palmolive are,
respectively,
$ 500$500,
$ 20$20,
$ 100$100
and
12 %12%,
10 %10%,
8 %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...
you own three stocks : 1000 shares of apple computer, 10000 shares of cisco system, and...
you own three stocks : 1000 shares of apple computer, 10000
shares of cisco system, and 5000 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%.
a. what arethe portfolio weights of the three stocks in your
portfolio?
b. whats the expected return of your portfolio?
c. assume that both apple and cisco go up by $5 and goldman
goes down by 10$ what are the new...
You own three stocks: 1 comma 000 shares of Apple Computer, 10 comma 000 shares of...
You own three stocks:
1 comma 000
shares of Apple Computer,
10 comma 000
shares of Cisco Systems, and
5 comma 000
shares of Goldman Sachs. The current share prices and expected
returns of Apple, Cisco, and Goldman Sachs are, respectively,
$ 136
,
$ 22
,
$ 122
and
12 %
,
10 %
,
10.5 %
.
a. What are the portfolio weights of the three stocks in your
portfolio?
b. What is the expected return of your...
Cisco Systems has 8.6 billion shares outstanding and a share price of $29. Cisco is considering...
Cisco Systems has 8.6 billion shares outstanding and a share
price of $29. Cisco is considering developing a new networking
product in a house at a cost of $629 million. Alternatively, Cisco
can acquire a firm that already has the technology for $904 million
worth (at the current price) of Cisco stock. Suppose that absent
the expense of the new technology, Cisco will have EPS of
$0.87.
a.) Suppose Cisco develops the product in-house. What impact
would the development cost...
Mrs. Smart owns three computer stocks, IBM, NCR, and Apple, and two oil stocks, GO and...
Mrs. Smart owns three computer stocks, IBM, NCR, and Apple, and
two oil stocks, GO and Tx. She calls her broker and asks him to
sell one stock of his choosing.
(a) (1 mark). List all outcomes in an appropriate sample space
S.
(b) (1 mark). List all outcomes in the event A that the broker
sells a computer stock.
(c) (1 mark). List all outcomes in the event B that the broker
sells an oil stock.
(d) (1 mark)....
Suppose you have $600 in your account. You bought 2 shares of Apple stock (AAPL) at...
Suppose you have $600 in your account. You bought 2 shares of
Apple stock (AAPL) at $204/share and 1 share of Microsoft stock
(MSFT) at $102/share. ___, the weight of MSFT is ____, and the
weight of cash ____
The weight of AAPL in your portfolio is:
The weight of MSFT in your portfolio is:
The weight of Cash in your portfolio is:
Please give your answers as two decimals. For example "fifty
percent" would be "0.50".
1- You own 600 shares of stock at a price of $3.61 per share. The company...
1- You own 600 shares of stock at a price of $3.61 per
share. The company has a 1 for 3 reverse split.
How many shares are now owned?
What is the new price/share?
What is the value of your investment before the
split?
After the split?
2- You own 5000 shares of stock at a price of $.45 per
share. The company has a 1 for 10 reverse split.
How many shares are now owned?
What is the new...
ADVERTISEMENT
ADVERTISEMENT
Latest Questions
- You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella Co.,...
- Parallel Arrays This question is in MindTap Cengage Summary In this lab, you use what you...
- 5. You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella...
- JAVA Write a test program that prompts the user to enter a series of integers and...
- (2) Cite an example on how organizations like Google, Facebook, Youtube etc collect data for image...
- The legal landscape is perpetually changing. Psychologists must remain abreast of these changes to avoid potentially...
- We are evaluating a project that costs $1.68 million, has a six-year life, and has no...
ADVERTISEMENT