Finance

Basic 1.The portfolio tilt of an plus is total investment in that asset divided by the total portfolio treasure. First, we will husking the portfolio value, which is: re spirite value = 95($53) + 120($29) = $8,515 The portfolio weight for each stock is: WeightA = 95($53)/$8,515 = .5913 WeightB = 120($29)/$8,515 = .4087 2.The venture mother of a portfolio is the sum of the weight of each asset time the judge die of each asset. The total value of the portfolio is: heart value = $1,900 + 2,300 = $4,200 So, the expect outlet of this portfolio is: E(Rp) = ($1,900/$4,200)(0.10) + ($2,300/$4,200)(0.15) = .1274 or 12.74% 3.The anticipate give up of a portfolio is the sum of the weight of each asset propagation the pass judgment die of each asset. So, the expected return of the portfolio is: E(Rp) = .40(.11) + .35(.17) + .25(.14) = .1385 or 13.85% 4.Here we are given the expected return of the portfolio and the expected return of e ach asset in the portfolio and are asked to maintain the weight of each asset. We can use the equation for the expected return of a portfolio to unclutter this problem. Since the total weight of a portfolio must equal 1 (100%), the weight of buy in Y must be one minus the weight of phone line X. Mathematically speaking, this means: E(Rp) = .129 = .16wX + .

10(1 wX) We can now solve this equation for the weight of armory X as: .129 = .16wX + .10 .10wX .029 = .06wX wX = 0.4833 So, the dollar mark aggregate invested in Stock X is the weight of Stock X quantify the total portfolio value, or: investm ent money in X = 0.4833($10,000) = $4,833.3! 3 And the dollar amount invested in Stock Y is: Investment in Y = (1 0.4833)($10,000) = $5,166.67 5.The expected return of an asset is the sum of the probability of each return occurring times the probability of that return occurring. So, the expected return of the asset is: E(R) = .2(.09) + .5(.11) + .3(.23) =...If you pauperism to get a full essay, order it on our website: OrderCustomPaper.com

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