Calculate the portfolio Beta using the weighting and the individual stock's Betas

2. Using the Beta calculated to calculate the expected return of the portfolio using the Risk Free  rate of 2% and the Market Risk Premium of 7%

3.Calculate the Forward Dividends you will receive from the portfolio.

4.What is the portfolio Forward Dividend Yield?

5.Calculate the weighted average Market Capitalization of your portfolio.

6.Calculate the weighted average Price/Earnings Ratio of your portfolio.

7.In a paragraph what does this information tell you about your portfolio?

 

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Provided below is the data for 5 large capitalization stocks. Invest $100,000 in a portfolio of those 5 stocks and determine each stock's weighting. You can invest the $100,000 amongst the given stocks however you'd like. Use the data provided to do the calculations requested below: Verizon AT&T VZ T Stock Name Stock Symbol Capital Spent on that Stock Percentage of Overall Portfolio (Stock Weight) Number of Shares Purchased Current Price Current Market Cap (Billion) Beta (3Y, Monthly) Price/Earnings Ratio Earnings Per Share Forward Dividend Forward Dividend Yield $? ? ? $58.16 $240.38 0.25 7.44 $7.82 $2.41 4.00% Xerox XRX $? ? ? $27.50 $6.34 1.13 336.96 $0.08 $1.00 3.71% $? ? ? $31.71 $224.85 0.46 6 $5.15 $2.00 6.40% Capital One COF $? ? ? $90.47 $40.12 1.34 11.84 $7.16 $1.60 1.78% Boeing BA ? ? $359.96 $196.29 1.59 20.29 $17.03 $6.84 2.19% Provided below is the data for 5 large capitalization stocks. Invest $100,000 in a portfolio of those 5 stocks and determine each stock's weighting. You can invest the $100,000 amongst the given stocks however you'd like. Use the data provided to do the calculations requested below: Verizon AT&T VZ T Stock Name Stock Symbol Capital Spent on that Stock Percentage of Overall Portfolio (Stock Weight) Number of Shares Purchased Current Price Current Market Cap (Billion) Beta (3Y, Monthly) Price/Earnings Ratio Earnings Per Share Forward Dividend Forward Dividend Yield $? ? ? $58.16 $240.38 0.25 7.44 $7.82 $2.41 4.00% Xerox XRX $? ? ? $27.50 $6.34 1.13 336.96 $0.08 $1.00 3.71% $? ? ? $31.71 $224.85 0.46 6 $5.15 $2.00 6.40% Capital One COF $? ? ? $90.47 $40.12 1.34 11.84 $7.16 $1.60 1.78% Boeing BA ? ? $359.96 $196.29 1.59 20.29 $17.03 $6.84 2.19%

Answer rating: 100% (QA)

To answer the questions and perform the calculations requested well use the given data for the stocks in the portfolio Lets go through each question step by step 1 Calculate the portfolio Beta using t... View the full answer