Your portfolio consists of two stocks: 95 shares of Stock A that sell for $47 per share and 120 shares of Stock B that sell for $25 per share. Required: (a) What is the portfolio weight of Stock A? (Click to select) (b) What is the portfolio weight of Stock B? (Click to select) ✓

Your portfolio consists of two stocks: 95 shares of Stock A that sell for $47 per share and 120 shares of Stock B that sell for $25 per share. Required: (a) What is the portfolio weight of Stock A? (Click to select) (b) What is the portfolio weight of Stock B? (Click to select) ✓

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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Your portfolio consists of two stocks: 95 shares of Stock A that sell for $47 per share and
120 shares of Stock B that sell for $25 per share.
Required:
(a) What is the portfolio weight of Stock A?
(Click to select)
(b) What is the portfolio weight of Stock B?
(Click to select)
V

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A portfolio has 70 shares of Stock A that sell for $43 per share and 105 shares of Stock B that sell for $34 per share. What is the portfolio weight of Stock A? What is the portfolio weight of Stock B?
Problem 2-12 (Algo) Consider the three stocks in the following table. Pt represents price at time t, and Qt represents shares outstanding at time t. Stock C splits two for one in the last period. Stock Po A B P1 01 P2 02 00 140 145 145 145 145 145 135 290 130 290 130 290 270 290 280 290 145 580 C Required: Calculate the first-period rates of return on the following indexes of the three stocks (t = 0 to t = 1): Note: Do not round intermediate calculations. Round your answers to 2 decimal places. a. A market-value-weighted index. b. An equally weighted index. a. Rate of return b. Rate of return % %
You own a stock portfolio invested 27 percent in Stock Q, 17 percent in Stock R, 43 percent in Stock S, and 13 percent in Stock T. The betas for these four stocks are .96, 1.02, 1.42, and 1.87, respectively. What is the portfolio beta? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
Assume a stock with an option with the information as follows. • Stock purchased price was $113.• Call option on the stock was purchased at $4. • Call option has strike price at $115.• the stock price is $117on expiration date Please explain the Call Options Payoff Diagrams below, why it plot like this (please explain step by step) . Thank you for your answering
What are the portfolio weights for a portfolio that has 195 shares of Stock A that sell for $96 per share and 170 shares of Stock B that sell for $130 per share? Note: Do not round intermediate calculations and round your answers to 4 decimal places, e.g., .1616. Stock A Stock B
1.1. Refer to the following information on joint stock returns for stock 1, 2, and 3 in the table: Probability Return for stock Stock 1 0.20 -0.05 Stock 2 0.25 Stock 3 0.10 0.20 0.30 0.25 0.25 0.05 0.10 0.05 -0.10 0.10 -0.05 If you must choose only two stocks to your investment portfolio, what would be your choice? a) stocks 1 and 2 b) stocks 1 and 3 c) stocks 2 and 3 d) other decision. Present your arguments and calculations, to explain your decision. 1.2. Refer to the following observations for stock A and the market portfolio in the table: Month Rate of return Market portfolio 0,12 Stock A 0.30 0.24 0,08 -0.10 -0,02 0,08 -0,04 4 0,10 0,06 6. 0,10 0,07 a) Calculate the main statistic measures to explain the relationship between stock A and the market portfolio: i) The sample covariance between rate of return for the stock A and the market. ii) The sample Beta factor of stock A. iii) The sample correlation coefficient between the rates of return of the stock A and the market. iv) The…
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
A portfolio has 380 shares of Stock A that sell for $59.15 per share and 278 shares of Stock B that sell for $83.07 per share. What is the portfolio weight of Stock A? Enter the answer in 4 decimals (e.g. 0.3044).
2. The following table shows the constituent stocks of a hypothetical index. Stock B splits two-for-one during the period. Stock A B C Beginning of Period Price ($) Shares 30 75 36 2,000 500 1,200 End of Period Price ($) 26 40 32 Shares 2,000 1,000 1,200 a. Calculate the returns on both the price-weighted index and the market value- weighted index of three stocks over the period. b. If you just buy 5,000 shares of stock C for $36, hold for 1 year, collect $8 dividend and sell it at $32. Calculate your total return.
You own a stock portfolio invested 32 percent in Stock Q, 22 percent in Stock R, 19 percent in Stock S, and 27 percent in Stock T. The betas for these four stocks are 1.35, 0.88, 1.74, and 0.62, respectively. What is the portfolio beta? Enter the answer with 4 decimals (e.g. 1.1234)
Give typing answer with explanation and conclusion
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