Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. accounting
  3. you own three stocks: 600 shares of apple computer

You own three stocks: 600 shares of Apple Computer, 10 comma 000 shares of Cisco...

70.2K

Verified Solution

Question

Accounting

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, $ 535, $ 17, $ 92 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 $ 24, Cisco rises by $ 6, and Colgate-Palmolive falls by $ 16. 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?

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students