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
Related questions
Question
![### Intro
You've assembled the following portfolio:
| Stock | Expected return | Portfolio weight |
|-------|------------------|------------------|
| 1 | 9.3% | 30% |
| 2 | 11.5% | |
| 3 | 16.9% | |
*Note: The Portfolio weight for stock 2 and stock 3 are unassigned.*
### Part 1
**Question:**
What is the weight for stock 3 if you want to achieve an expected portfolio return of 15%?
**Answer Input Box:**
*Please input the weight in decimals (e.g., 0.45 for 45%)*
[Submit Button]](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F75fb4f79-5bfb-4902-85d2-e1edc76b1d17%2Fcf147752-a42a-45b5-a556-0f721df15928%2F962mrs6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:### Intro
You've assembled the following portfolio:
| Stock | Expected return | Portfolio weight |
|-------|------------------|------------------|
| 1 | 9.3% | 30% |
| 2 | 11.5% | |
| 3 | 16.9% | |
*Note: The Portfolio weight for stock 2 and stock 3 are unassigned.*
### Part 1
**Question:**
What is the weight for stock 3 if you want to achieve an expected portfolio return of 15%?
**Answer Input Box:**
*Please input the weight in decimals (e.g., 0.45 for 45%)*
[Submit Button]
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