Total portfolio value = (Number of shares of stock A x Price per share of stock A) + (Number of shares of stock B x Price per share of stock B)
= (4,200 x $ 25) + (1,800 x $ 30) = $ 105,000 + $ 54,000 = $ 159,000
Proportion of stock A = Total value of stock A/Total portfolio value
= (4,200 x $ 25)/ $ 159,000
= $ 105,000 / $ 159,000
= 0.660377358 or 66 %
66 % of market portfolio comprises of stock A.
Option “B. 66 %” is correct answer.
A stock market comprises 4200 shares of stock A and 1800 shares of stock B. Assume...
A stock market comprises 4100 shares of stock A and 1900 shares of stock B. Assume the share prices for stocks A and B are $25 and 540, respectively. What proportion of the market portfolio is comprised of stock A? OA. - 56.4% OB. 576,000 OC. $102,500 OD. 57.4%
A stock market comprises 4400 shares of stock A and 1800 shares of stock B. Assume the share prices for stocks A and B are $20 and $40, respectively. If you have $15,000 to invest and you want to hold the market portfolio, how much of your money will you invest in Stock A? O A. $9,900.00 O B. $6,750.00 OC. $8,250.00 OD. $4,950.00 Click to select your answer.
A stock market comprises 4400 shares of stock A and 1700 shares of stock B. Assume the share prices for stocks A and B are $25 and $30, respectively. If you have $15,000 to invest and you want to hold the market portfolio, how much of your money will you invest in Stock A? O A. $6,149.07 O B. $12,298.14 OC. $4,751.55 OD. $10,248.45
A portfolio consists of 200 shares of Stock A, 300 shares of Stock B, 500 shares of Stock C, and 700 shares of Stock D. The prices of these stocks are $19, $36, $21, and $15 for Stocks A through D, respectively. What is the portfolio weight of Stock C?
c) A portfolio comprises three stocks, A, B and C. Stock A is 25% of the portfolio and has a return of 18%; stock B is 40% of the portfolio and has a return of 24%; and stock C completes the portfolio. Find the return of stock C if the overall expected return of the portfolio is 19.7%. [5 marks]
A portfolio is comprised of two stocks, A and B. Stock A has a standard deviation of return of 25% while stock B has a standard deviation of return of 5%. Stock A comprises 20% of the portfolio while stock B comprises 80% of the portfolio. If the variance of return on the portfolio is .0080, the correlation coefficient between the returns on A and B is __________. A. -.975 B. -.025 C. .025 D. .975
A portfolio is comprised of the following stocks. What is the portfolio beta? Stock Market Value of Shares Beta A $ 19,000 2.04 B $ 20,000 1.08 C $ 9,600 1.21
There are three stocks in the market, stock A, stock B, and stock C. The price of stock A today is $75. The price of stock A next year will be $63 if the economy is in a recession, $83 if the economy is normal, and $95 if the economy is expanding. The probabilities of recession, normal times, and expansion are 0.20, 0.65, and 0.15, respectively. Stock A pays no dividends and has a beta of 0.64. Stock B has...
A portfolio is comprised of the following stocks. What is the portfolio beta? Stock Market Value of Shares Beta A $ 14,000 1.79 B $ 17,500 .98 C $ 8,600 1.16 1.18 1.45 1.30 1.37 You own a $25,000 portfolio that is invested in a risk-free security and Stock A. The beta of Stock A is 1.70 and the portfolio beta is .95. What is the amount of the investment in Stock A? $14,791 $11,331 $13,971 $16,531
You own 500 shares of Stock A at a price of $75 per share, 525 shares of Stock B at $95 per share, and 750 shares of Stock C at $44 per share. The betas for the stocks are 0.7, 1.5, and 0.8, respectively. What is the beta of your portfolio? (Do not round intermediate calculations. Round your answer to 2 decimal places.)