16-5 A portfolio consists of stocks from three companies: General Dynamics, Target and ConAgra Foods. The...

   

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16-5 A portfolio consists of stocks from three companies: General Dynamics, Target and ConAgra Foods. The portfolio's is held for 1 year. The number of shares and the stock prices at the beginning and the end of the holding period are shown in the table below. All of these stocks are trade on the NYSE, which has had an average return over the last 10 years of 6.3%. 30-day T-bills have yielded an average of 1.7% for the last 10 years. What is the expected return and realized return of the portfolio and what is the ending value of the portfolio? Initial # of Stock Shares Price Initial Value $62.59 Stock Gen. Dyn. 500 $36.41 Target 1000 ConAgra 1000 $21.91 Weight (by value) (b) Beta 34.92% 0.48 1.17 0.46 Expected Rejurn Weighted (r) Ending Stock Price $66.66 $37.87 $22.57 Ending Value Realized Weighted Return (r) 0.00% 16-5 A portfolio consists of stocks from three companies: General Dynamics, Target and ConAgra Foods. The portfolio's is held for 1 year. The number of shares and the stock prices at the beginning and the end of the holding period are shown in the table below. All of these stocks are trade on the NYSE, which has had an average return over the last 10 years of 6.3%. 30-day T-bills have yielded an average of 1.7% for the last 10 years. What is the expected return and realized return of the portfolio and what is the ending value of the portfolio? Initial # of Stock Shares Price Initial Value $62.59 Stock Gen. Dyn. 500 $36.41 Target 1000 ConAgra 1000 $21.91 Weight (by value) (b) Beta 34.92% 0.48 1.17 0.46 Expected Rejurn Weighted (r) Ending Stock Price $66.66 $37.87 $22.57 Ending Value Realized Weighted Return (r) 0.00%

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The image shows a table with data relevant to a portfolio consisting of stocks from General Dynamics Target and ConAgra Foods The table includes the number of shares initial stock price weight by valu... View the full answer