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
why is agency problem important

ABC Ltd. Produces electronic components with a selling price per of Rs.100. Fixed cost amount to Rs.2,00,000/- 5000 units are produced and sold each year. Annua

how would you judge the potential profit of Bajaj Electronics on the first year of sales to Booth Plastics and give your views to increase the profit?

It is a phrase referring to the tendency of departments to become isolated from one another in a functionally structured company.

State about the two types of Government Securities There are two types of Government Securities which are offered: Government Floating Rate Bonds which pay a floating rate

State about the Financing MBO There are many sources of finances available for an MBO Venture capitalists Merchant banks Institutional investors such as pension funds

(a).At the end of three years, how much is an initial deposit of $100 worth, assuming a compound annual interest rate of (i) 100 percent? (ii) 10 percent? (iii) 0 percent? (b).b. A

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

capital structure

Explain the factors which company should apply Companies to be the very best must Establish what competition is doing Set the very best standards to exceed Es