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 5 months agoRelated Solutions
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You own three stocks: 600 shares of Apple Computer, 10,000
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