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
Dividends are expected to grow at a constant rate of 5 percent per year in the future. Firms last dividend was $1 and stock price 10 dollars the firms beta 1,2 the rate of return o

The horizon price can be determined by incorporating Option-Adjusted Spread (OAS) into a total return analysis. But this requires a valuation mo

The Nu-Nu Brothers Inc. (NNBI) has the following capital structure, which it considers to be optional: Debt 25% Preferred Stock 15% Common Equity 60% NNBI''''s expected net income

Hedge funds are short two types of funding options. Describe in detail what these options are.   Describe why these options become more valuable during a financial crisis.   During

Diversification A  strategy  which tends to move  into  new  products  and  new  markets  in  which  organisation is unfamiliar with. Related for example vertical forwar

Dividend cover Dividend cover = Profit available to ordinary shareholders (PAT) / Annual dividend(no. of times) Or =    EPS/Dividend per share Dividend cover shows safety

Valuing Debt Securities Securities which promise to pay its investors a stated rate of interest and return principal amount at the maturity date are known as debt securities.

I need a paper on the financial status of the company under armour with ratios using information from yahoo.com finances. & Id like to provide a document with further details

Global Scenario The Hedge Fund industry has captured over US $ 2 trillion in assets globally by the end of year 2006. According to an investor survey revealed for the Hedge Fun

The Stock of Jeo Ltd performs relatively well compared to other stocks during recessionary periods. The stock of Avi Ltd, on the other hand, does well during growth periods. Both