Portfolio weights of each stock

Assignment Help Financial Management

Reference no: EM131054882

Portfolio Weights If you own 270 shares of Air Line Inc at $18.95, 170 shares of BuyRite at $9.9, and 370 shares of Motor City at $45.95, what are the portfolio weights of each stock?

Air Line = .2150, BuyRite = .0707, MotorCity = .7143

Air Line = .3333, BuyRite = .3333, MotorCity = .3333

Air Line = .3333, BuyRite = .2099, MotorCity = .4568

Air Line = .2700, BuyRite = .1700, MotorCity = .3700

Reference no: EM131054882

Questions Cloud

Generates operating cashflows : Firm considers project which requires an immediate investment of $100, and generates operating cashflows (OCF) in the amount of $40 at the end of each of the next four years. Assume that at time 4 the book value of the asset is $5, and assume a 20% t..

Buying stock with commission : Buying Stock with Commission At your discount brokerage firm, it costs $10.70 per stock trade. How much money do you need to buy 300 shares of International Business Machines (IBM), which trades at $96.24?

Buying stock with a market order : Buying Stock with a Market Order You would like to buy shares of Ralph Lauren (RL). The current bid and ask quotes are $85.26 and $85.46, respectively. You place a market buy-order for 200 shares that executes at these quoted prices. How much money d..

Estimate of the stocks current price : A company currently pays a dividend of $2.25 per share (D0 = $2.25). It is estimated that the company's dividend will grow at a rate of 22% per year for the next 2 years, then at a constant rate of 7% thereafter. The company's stock has a beta of 1.2..

Portfolio weights of each stock : Portfolio Weights If you own 270 shares of Air Line Inc at $18.95, 170 shares of BuyRite at $9.9, and 370 shares of Motor City at $45.95, what are the portfolio weights of each stock?

Interested in forecasting expected return : Suppose you are interested in forecasting expected return next year for a share of stock you have owned for the last three years. Describe in words the steps you would undertake to come up with your forecast.

The investors percentage return on the investment : An investor buys shares in a mutual fund for 10 per share. At the end of the year the fund distributes a dividend of $0.67, and after the distribution the net asset value of a share is $11.12. What would be the investor’s percentage return on the inv..

Two securities are combined into equally weighted portfolio : Assume two securities are negatively correlated. If these two securities are combined into an equally weighted portfolio, the portfolio standard deviation must be:

According to the maturity model : Suppose that a commercial bank has a positive Maturity Gap. In order to reduce the risk of exposure to possible interest rate increases, according to the Maturity Model, the bank should: A. leave the maturity gap as is B. increase the maturity of its..

User Account

All Pages