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 portfolio weights?

d. Assuming the stocks’ expected returns remain the same, what is the expexted return of the portfolio at the new prices?

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jeff jeffy answered 1 year ago

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