A portfolio has three stocksFund (SPY). If the price of YHOO is $20, the price of GM is $30, and the price of SPY is $150, calculate the portfolio weight of YHOO and GM.330 shares of Yahoo (YHOO), 350 shares of General Motors (GM), and 60 shares of Standard and Poor's Index.....A. 25.3%, 40.2%В. 25.3%, 52.3%С. 19%, 34.2%D. 12.6%, 24.1%

We will use the market price of each stock and respective no of shares to assess the market value…

A portfolio has three stocks – 330 shares of Yahoo (YHOO), 350 shares of General Motors (GM), and 60 shares of Standard and Poor's Index Fund (SPY). If the price of YHOO is $20, the price of GM is $30, and the price of SPY is $150, calculate the portfolio weight of YHOO and GM. ..... O A. 25.3%, 40.2% O B. 25.3%, 52.3% OC. 19%, 34.2% O D. 12.6%, 24.1%

A portfolio has three stocks – 330 shares of Yahoo (YHOO), 350 shares of General Motors (GM), and 60 shares of Standard and Poor's Index Fund (SPY). If the price of YHOO is $20, the price of GM is $30, and the price of SPY is $150, calculate the portfolio weight of YHOO and GM. ..... O A. 25.3%, 40.2% O B. 25.3%, 52.3% OC. 19%, 34.2% O D. 12.6%, 24.1%

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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You have just invested in a portfolio of three stocks. The amount of money that you invested in each stock and its beta are summarized below. Stock Investment Beta A $218,000 1.50 B 327,000 0.60 C 545,000 1.18 Calculate the beta of the portfolio and use the Capital Asset Pricing Model (CAPM) to compute the expected rate of return for the portfolio. Assume that the expected rate of return on the market is 17 percent and that the risk-free rate is 8 percent. (Round beta answer to 3 decimal places, e.g. 52.750 and expected rate of return answer to 2 decimal places, e.g. 52.75%.) Beta of the portfolio Expected rate of return %
You own a stock portfolio invested in 40 percent in stock A and 60 percent in Stock B. The betas for these two stocks are 0.5 and 1.0 respectively. What i S the portiolio beta? 1.5 0.75 1.0 0.8
Suppose Wesley Publishing's stock has a volatility of 70%, while Addison Printing's stock has a volatility of 20%. If the correlation between these stocks is 25%, what is the volatility of the following portfolios of Addison and Wesley: a. 100% Addison b. 75% Addison and 25% Wesley c. 50% Addison and 50% Wesley a. The volatility of a portfolio of 100% Addison stock is %. (Round to two decimal places.) b. The volatility of a portfolio of 75% Addison and 25% Wesley is %. (Round to two decimal places.) c. The volatility of a portfolio of 50% Addison and 50% Wesley is %. (Round to two decimal places.)
Consider the following information: Probability of State of Portfolio Return if State State of Economy Economy Occurs Recession .20 -13 Вoom .80 .19 Calculate the expected return. (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return %
A portfolio has three stocks -220 shares of Yahoo (YHOO), 150 shares of General Motors (GM), and 70 shares of Standard and Poor's Index Fund (SPY) if the price of YHOO is $30, the price of GM is $30, and the price of SPY is $130, calculate the portfolio weight of YHOO and GM OA. 18%, 41.2% OB. 9.8 %, 13.4% OC. 31%, 23.4% OD. 32.7%, 22.3%
You have a portfolio with the following: Expected Return Stock Number of Shares Price 750 $ 47 14% 650 24 18 400 60 16 625 45 17 What is the expected return of your portfolio? (Do not round intermediate calculation and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.) Expected return
You own a portfolio that has $1,600 invested in Stock A and $2,700 invested in Stock B. Assume the expected returns on these stocks are 11 percent and 17 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Your portfolio consists of 85 shares of CSH and 50 shares of EJH, which you just bought at $19.84 and $28.74 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to $22.28 and EJH decreases to $26.28, what is the return on your portfolio? a. What fraction of your portfolio is invested in CSH? In EJH? The fraction invested in CSH is %. (Round to two decimal places.) ...
A portfolio is invested 24 percent in Stock G, 39 percent in Stock J, and 37 percent in Stock K. The expected returns on these stocks are 10.5 percent, 13 percent, and 18.4 percent, respectively. What is the portfolio's expected return? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
26) Your portfolio is comprised of the following stocks: $125,500 in stock Bross with a beta 2.8; $112,000 in stock Cameron with a beta of 2.2; and $107,000 in stock Berthoud with a beta of 0.3. What is beta of your portfolio. 5.30 1.77 1.83 1.35
You own a portfolio that has $18,000 invested in Stock A and $17,000 invested in Stock B. The expected returns on these stocks are 15.9 percent and 7.1 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)
Consider a portfolio with stocks A, B, and C. The total value of the portfolio is $245,000 and it is fully invested in these 3 stocks. $85,653 is invested in A and $69,552 is invested in B. The Betas of stocks A, B, and C are 1.2, .8, and 1.62, respectively. What is the Beta of the portfolio overall?

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