Consider a portfolio of 250 shares of firm A worth $30/share and 1500 shares of firm B

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Consider a portfolio of 250 shares of firm A worth $30/share and 1500 shares of firm B worth $20/share. You expect a return of 4% for stock A and a return of 9% for stock B.

what is the total values of the portfolio, weight and expected return?

Suppose firm A's share price falls to $24 and firm B's share price goes up to $22. What is the new value of the portfolio? What return did it earn? After the price change, what are the new portfolio weights?

Posted Date: May 21, 2024 02:13 AM

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Consider a portfolio of 250 shares of firm A worth $30/share and 1500 shares of firm B

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