You own three stocks: 600 shaces of Apple Compute, 10.000 shares of Cisco Systems, and...
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You own three stocks: 600 shaces of Apple Compute, 10.000 shares of Cisco Systems, and 5,000 shares of Colgate-Palmolive. The curreeh share prices and expected returns of Apple, Cisco. and Colgate-Palmolime are, respectively, $457,$25,$108 and 12%,10%,8%. a. What are the portiolio weights of the three stocks in your portlolio? b. What is the expected return of your porttolio? c. Suppose the price of Apple stock goes up by \$20, Cisco rises by \$4, and Colgate-Palmollve falls by $16. What are the new portfolio weights? d. Assuming the stocks' expected retums remain the same, what is the eopected return of the portlolio at the newe prices? a. What are the portslis weights of the three stocks in your portiolio? The portiolio weight of Apple Computer is \%. (Found to two decimal places.) The portiolio weight of Cisco Systems is K. (Reund to two decimal places.) The portiolio weight of Colgate-Palmolive is os. (Round to two decimal places.) b. What is the expected return of your portfolio? The expected retum on the portilio is Th. (Round to two decimal places.) c. Suppose the price of Apple stock goes up by \$20. Cisco tises by $4, and Colgate-Palmolve talls by $16. What are the new portlolio weights? The new portfolo weight of Apple is 5 . (Round to two decimal places.) The new portfolio weight of Cisco is 3 . (Round to two decimal places.) The new portfolio weight of Colgate-Palmolive is 1\%. (Found to two decimal places.) d. Assuming the stocks" expected returns remain the same, what is the expected retum of the portfolio at the new prices
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