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...