Question 1:
Score 0/1
Your response
Correct response
Determining Portfolio Weights
A portfolio has 80 shares of Stock A that sell for $74 per share and 115 shares of Stock B that sell for $48 per
share. The weight of A is
0
(0%) and the weight of B is
0
(0%).
(Round your answers to 4 decimal
places.)
Determining Portfolio Weights
A portfolio has 80 shares of Stock A that sell for $74 per share and 115 shares of Stock B that sell
share. The weight of A is
0.5175 with a tolerance of ± 1.0%
and the weight of B is
0.482
tolerance of ± 1.0%
.
(Round your answers to 4 decimal places.)
Total grade:
0.0×1/2 + 0.0×1/2 = 0% + 0%
Feedback:
The portfolio weight of an asset is equal to the total investment in that asset divided by the total portfolio value.
First, we will find the portfolio value, which is:
Total value = 80($74) + 115($48)
Total value = $11,440
The portfolio weight for each stock is:
WeightA = 80($74)/$11,440
WeightA = 0.5175
WeightB = 115($48)/$11,440
WeightB = 0.4825
Question 2:
Score 0/1
Your response
Correct response
Portfolio Expected Return
You own a portfolio that has $1,600 invested in Stock A and $1,200 invested in Stock B. If the expected returns on
these stocks are 11 percent and 10 percent, respectively, the expected return on the portfolio is
0
(0%) percent.
(Input answer as a percent rounded to 2 decimal places, without the percent sign.)
Portfolio Expected Return
You own a portfolio that has $1,600 invested in Stock A and $1,200 invested in Stock B. If the expecte
these stocks are 11 percent and 10 percent, respectively, the expected return on the
10.57 with a tolerance of ± 1.0%
percent.
(Input answer as a percent rounded to 2 decim
without the percent sign.)
Total grade:
0.0×1/1 = 0%
Feedback:
The expected return of a portfolio is the sum of the weight of each asset times the expected return of each asset.
The total value of the portfolio is:
Total value = $1,600 + 1,200
Total value = $2,800
So, the expected return of this portfolio is:
E(Rp) = ($1,600/$2,800)(0.11) + ($1,200/$2,800)(0.1)
E(Rp) = 0.1057 or 10.57%
Question 3:
Score 0/1
Your response
Correct response
Portfolio Expected Return
You own a portfolio that is 42 percent invested in Stock X, 34 percent in Stock Y, and 24 percent in Stock Z. The
expected returns on these three stocks are 20 percent, 20 percent, and 12 percent, respectively. The expected
return on the portfolio is
0
(0%) percent.
(Input answer as a percent rounded to 2 decimal places,
without the percent sign.)
Portfolio Expected Return
You own a portfolio that is 42 percent invested in Stock X, 34 percent in Stock Y, and 24 percent in S