Stock X had a return of 7.00% last year. Stocks Y and Z earned -3.00% and 11.10%
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Question:
Stock X had a return of 7.00% last year. Stocks Y and Z earned -3.00% and 11.10% respectively. The following table shows 3 portfolios: A, B, and C. What is the portfolio return under the following scenarios?
| Stock | Return | Weights A | Weights B | Weights C |
|---|---|---|---|---|
| X | 7.00% | 1/3 | 0.5 | 0.25 |
| Y | -3.00% | 1/3 | 0.3 | 0.4 |
| Z | 11.10% | 1/3 | 0.2 | 0.35 |
What is the portfolio return when the stocks are equally weighted in portfolio A?
What is the portfolio return for portfolio B?
What is the portfolio return for portfolio C?
Expert Answer:
To calculate the portfolio return we need to multiply the return of each stock by its corresponding ... View the full answer
Related Book For 
Macroeconomics Principles and Applications
ISBN: 978-1133265238
5th edition
Authors: Robert e. hall, marc Lieberman
Posted Date:
