Expected return of your portfolio, Financial Management

You own three stocks: 1000 shares of Apple Computer, 10,000 shares of Cisco Systems, 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 are the portfolio weights of the three stocks in your portfolio?

b.    What is the expected return of your portfolio?

c.    Suppose 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 similar, what is the expected return of the portfolio at the new prices?

Posted Date: 3/14/2013 2:00:49 AM | Location : United States







Related Discussions:- Expected return of your portfolio, Assignment Help, Ask Question on Expected return of your portfolio, Get Answer, Expert's Help, Expected return of your portfolio Discussions

Write discussion on Expected return of your portfolio
Your posts are moderated
Related Questions
XYZ company produces three products X,Y and Z. for the coming accounting period budgets are to be prepared based on following information. Budgeted Sales Product X       2,00

Basic Assumptions of Cost of Capital The Cost of Capital is a dynamic concept affected by a multiplicity of economic and firm factors and assumes the following assumptions rela

Q. What is Adjusted Basis? Adjusted Basis - After a taxpayer's basis in property is determined, it should be adjusted upwardto include any additions of capital to the property

Geographical Classification of Mutual Funds : Nations' boundaries provide territorial restrictions on the sale and purchase of mutual fund units or shares as is the case in com

There are two major factors to be considered while analyzing sovereign bonds. They are: economic risk and political risk. Economic risk is all about the ability a

Q. Explain Financial Management in brief? In the management of business firms, there are various well known functional areas such as Production Management, Materials Management

Different bonds trade at different yields though the coupon rate, maturity, and embedded options are same for them. Assuming that all the other bond characteristi

Q. What is Deposit Method? Deposit Method - Related to sales of real estate, under this method seller doesn't recognize any profits, doesn't record a note RECEIVABLE and contin

Modern approach at financial problems With the advent of technology and need to tighten shipsdue to competition, financial management became as much a science as art. Efficient

State about the Quick ratio or acid test Quick ratio = Current assets less inventories /Current liabilities(times) This  ratio  measures  immediate  solvency  of  a  busin