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
I need assistance with 4 questions. How do I know someone can help me and have some idea of what it would cost before submitting the information? Also, how fast is the turnaround

Explain Zero coupon bonds The bonds that are sold at a discount from face value and do not pay any coupon interest over their life are known as Zero coupon bonds. At maturity t

need to understand some basics of changes in working capital

a) This refers a business, such as Palmolive-Colgate being able to sell the same product using the same marketing approach all over the world. It is used by firms with global brand

uses and limitations of the marginal weighting system

This question tested the core area of specifically gradually consolidation and acquisitions (control to control). The principle of calculation of goodwill at the date where control

Short-term funds having a maturity of 15 days and over are categorized as term money. Banks access this term money route to bring greater stability in their short

What impact does high inflation have on the value of a business? Besides causing distortion (as it unequally affects all goods and services), inflation enhances the uncertainty

Need to Widen and Deepen the Government Securities Market The importance of the Government Securities markets can be evaluated from three angles as follows: From the Gove

These types of securities have more than one coupon rate and each subsequent coupon rate is higher (or lower) than the previous coupon rate. For