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, 10,000 shares of Cisco Systems, and...

60.1K

Verified Solution

Question

Accounting

You own three stocks: 600 shares of Apple Computer, 10,000 shares of Cisco Systems, and 5000 shares of Colgate-Palmolive. The current share prices and expected returns of Apple, Cisco, and Colgate-Palmolive are, respectively, $500, $20, $100 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 $25, Cisco rises by $5, and Colgate-Palmolive falls by $13. What are the new portfolio weights?
  • d. Assuming the stocks

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

Finance
1.2K views

Discuss the five main stages in the process of venture capital financing.

Statistics
1.2K views

Motorola used the normal distribution to determine the probability of defects and the number of defects...

Biology
1.2K views

DODT DNA Replication DNA polymerase Leading strand RNA primer Lagging strand Helicase DNA polymerase Original...

Physics
1.2K views

6 The internal energy of a gas is given by U 2pV It expands from...

Physics
1.2K views

31 32 ast Course A body of mass 1 kg thrown upwards with a velocity...

Geometry
1.2K views

8 Graph each function a y sin x b y cos x c y tan...

Basic Math
1.2K views

and edge set A B C D E A B B E B C C...

Calculus
1.2K views

2 For what values of k is the series a Absolutely convergent b Conditionally convergent...

Accounting
1.2K views

On December 31, Lee Company has the following list of account balances. Required: Compute the...

Accounting
1.2K views

(Issuance and Conversion of Bonds) For each of the unrelated transactions described below, present the...

Accounting
1.2K views

Carla Vista sells a learning system that helps preschool and elementary students learn basic math...

Accounting
1.2K views

Calculate the markup for both headphones and speakers. (Enter your answers as a percentage rounded...