Andrew is considering to put $200,000 into three stocks. 50% in ABC selling at $25/share. 25%...

 

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Andrew is considering to put $200,000 into three stocks. 50% in ABC selling at $25/share. 25% in XYZ currently $80/share and the remainder in RK @ $2/share. If ABC goes up to nare $30/share, XYZ drops to $80/share, and RKJ rises to $3/share. a)what is the new value of the portfolio? b) what return the portfolio earn? 210 c) If Andrew does not buy or sell shares after price change, what are new portfolio weights? 21 Andrew is considering to put $200,000 into three stocks. 50% in ABC selling at $25/share. 25% in XYZ currently $80/share and the remainder in RK @ $2/share. If ABC goes up to nare $30/share, XYZ drops to $80/share, and RKJ rises to $3/share. a)what is the new value of the portfolio? b) what return the portfolio earn? 210 c) If Andrew does not buy or sell shares after price change, what are new portfolio weights? 21 Andrew is considering to put $200,000 into three stocks. 50% in ABC selling at $25/share. 25% in XYZ currently $80/share and the remainder in RK @ $2/share. If ABC goes up to nare $30/share, XYZ drops to $80/share, and RKJ rises to $3/share. a)what is the new value of the portfolio? b) what return the portfolio earn? 210 c) If Andrew does not buy or sell shares after price change, what are new portfolio weights? 21

Answer rating: 100% (QA)

a New Value of the Portfolio Step 1 Calculate individual changes in value ABC 50 200000 30share 25sh... View the full answer