Question: Five years ago your dad bought 250 shares of ABC
Five years ago, your dad bought 250 shares of ABC for $6 each and 300 shares of DEF for $7.50 each. He has now given you all his shares, when both stocks are trading at $8. What are the weights of the two stocks in your portfolio?
Relevant QuestionsThe expected return of ABC is 18 percent, and the expected return of DEF is 23 percent. Their standard deviations are 12 percent and 20 percent, respectively. If a portfolio is composed of 35 percent ABC and the remainder ...FinCorp Inc. wishes to examine the effect of correlation on the efficient frontier that can be created by investing in ABC and FGI. The expected return of ABC is 6 percent, with a standard deviation of 10 percent. The ...Calculate the ex post standard deviation of returns for the following: 50 percent, 30 percent, 20 percent, 35 percent, and 55 percent.A lawyer prosecuting a lawsuit against The Brokerage Company has hired you to conduct an investigation into the advice the company has been giving its clients. You observe that clients have invested in the following ...You are following five different stocks and need to issue a recommendation (buy, hold, or sell) to your customers. The market return is 7 percent, with a standard deviation of 4 percent. The risk-free rate is 3 percent. The ...
Post your question