**Stock Portfolios****Stock Values Across Portfolios**Three bar charts represent the value distribution of stocks across three different portfolios, labeled A, B, and C. The bars are color-coded according to stock type: - **Large-cap (Blue)**: - Portfolio A: $5,000 - Portfolio B: $2,000 - Portfolio C: $2,500- **Mid-cap (Orange)**: - Portfolio A: $3,000 - Portfolio B: $3,000 - Portfolio C: $1,000- **Small-cap (Red)**: - Portfolio A: $2,000 - Portfolio B: $5,000 - Portfolio C: $6,500**Expected Returns**A bubble chart shows the expected returns for each stock type:- Large-cap: Approximately 10%- Mid-cap: Approximately 7%- Small-cap: Approximately 15%The bubble size represents relative risk, though detailed risk measures aren't specified.**Portfolio Investment Percentage by Stock**Three pie charts illustrate the percentage composition by stock type for each portfolio:- **Portfolio A:** - Large-cap: 50% - Mid-cap: 30% - Small-cap: 20%- **Portfolio B:** - Large-cap: 20% - Mid-cap: 30% - Small-cap: 50%- **Portfolio C:** - Large-cap: 25% - Mid-cap: 10% - Small-cap: 65%**Scenario Description:**A financial manager is evaluating three potential portfolios to recommend the best structure for three clients, each with $10,000 to invest. The clients are Risk A. Verse, Steady Dozit, and Risky Roller. The Tableau Dashboard provides the necessary data for analysis.**Required:**1. What is the percentage of mid-cap stock investment in Portfolio A?2. What is the percentage of large-cap stock investment in Portfolio B?3. What is the percentage of small-cap stock investment in Portfolio C?

Portfolio Small-cap Mid-Cap Large-Cap A $ 2,000.00 $ 3,000.00 $ 5,000.00 B $ 5,000.00 $ 3,000.00 $ 2,000.00 C $ 2,500.00 $ 5,000.00 $ 2,500.00Formula's Calculations: Final Answers: Percentage of Mid cap in portfolio A 30.00% Percentage of Large cap in portfolio B 20.00% Percentage of Small cap in portfolio C 25.00%

Business

Finance

A financial manager is reviewing three potential portfolios. His goal is to find the best portfolio structure for each of his three new clients: Client Risk A. Verse, Client Steady Dozit, and Client Risky Roller. Each of his new clients has $10,000 to invest. The following Tableau Dashboard provides information on the three possible portfolios and stock returns. Required: 1. What is the percentage of mid-cap stock investment in Portfolio A? 2. What is the percentage of large-cap stock investment in Portfolio B?

A financial manager is reviewing three potential portfolios. His goal is to find the best portfolio structure for each of his three new clients: Client Risk A. Verse, Client Steady Dozit, and Client Risky Roller. Each of his new clients has $10,000 to invest. The following Tableau Dashboard provides information on the three possible portfolios and stock returns. Required: 1. What is the percentage of mid-cap stock investment in Portfolio A? 2. What is the percentage of large-cap stock investment in Portfolio B?

Essentials Of Investments

11th Edition

ISBN:9781260013924

Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.

Chapter1: Investments: Background And Issues

Section: Chapter Questions

Problem 1PS

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As an active fund manager, you have obtained information on three individual stocks, the market index, and T-bills as follows: Expected Return (%) Asset Stock 1 Stock 2 Stock 3 Market Index T-bills 20.0 16.0 6.0 10.0 4.0 Total Standard Deviation (%) 80.00 60.00 50.00 40.00 0.00 Beta 1.8 1.4 0.8 1.0 0.0 You decide to use the above information to form an optimal active portfolio, consisting of the three individual stocks. Determine the corresponding weights for the three stocks in the optimal active portfolio. Show your work.
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