Victoria Goldman is a financial advisor who manages money for high net worth individuals. For a particular client, Victoria recommends the following portfolio of stocks.
a. Calculate the portfolio weights implied by Ms. Goldman’s recommendations. What fraction of the portfolio is invested in GRA and SI combined?
b. Suppose that the client purchases the stocks suggested by Ms. Goldman, and a year later the prices of the five stocks are as follows: GRA($60), SI($50), LO($38), VM($20), WT($50). Calculate the portfolio weights at the end of the year. Now what fraction of the portfolio is held in GRA and SI combined?

  • CreatedMarch 26, 2015
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