You own three stocks: 600 shares of Under Armour, 10,000 shares of Nike, and 5,000 shares of Adidas. The current share prices and expected returns of Under Armour, Nike and Adidas are, respectively, $514, $20, $91 and 12%, 10%, 8%. a. What are the portfolio weights of the three stocks in your portfolio? b. What is the expected return of your portfolio? Question content area bottom Part 1 a1. The portfolio weight of Under Armour is enter your response here%. (Round to two decimal places.) a2. The portfolio weight of Nike is enter your response here%. (Round to two decimal places.) a3. The portfolio weight of Adidas is enter your response here%. (Round to two decimal places.) b. The expected return on the portfolio is enter your response here%. (Round to two decimal places.)
You own three stocks: 600 shares of Under Armour, 10,000 shares of Nike, and 5,000 shares of Adidas. The current share prices and expected returns of Under Armour, Nike and Adidas are, respectively, $514, $20, $91 and 12%, 10%, 8%. a. What are the portfolio weights of the three stocks in your portfolio? b. What is the expected return of your portfolio? Question content area bottom Part 1 a1. The portfolio weight of Under Armour is enter your response here%. (Round to two decimal places.) a2. The portfolio weight of Nike is enter your response here%. (Round to two decimal places.) a3. The portfolio weight of Adidas is enter your response here%. (Round to two decimal places.) b. The expected return on the portfolio is enter your response here%. (Round to two decimal places.)
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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Question
You own three stocks:
600
shares of Under Armour,
10,000
shares of Nike, and
5,000
shares of Adidas. The current share prices and expected returns of Under Armour, Nike and Adidas are, respectively,
$514,
$20,
$91
and
12%,
10%,
8%.
a. What are the portfolio weights of the three stocks in your portfolio?
b. What is the expected return of your portfolio?
Question content area bottom
Part 1
a1. The portfolio weight of Under Armour is
enter your response here%.
(Round to two decimal places.)a2. The portfolio weight of Nike is
enter your response here%.
(Round to two decimal places.)a3. The portfolio weight of Adidas is
enter your response here%.
(Round to two decimal places.)b. The expected return on the portfolio is
enter your response here%.
(Round to two decimal places.)Expert Solution
Step 1: Background
Portfolio return will be weighted return of the 3 shares.
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