The variance of returns (entries on the main diagonal) and covariances between returns of these top...
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The variance of returns (entries on the main diagonal) and covariances between returns of these top five stocks, expressed in decimal (not percentage) form, are as follows: AAPL AMZN MSFT GOOG ΜΕΤΑ AAPL 0.21 0.12 0.17 0.13 0.16 AMZN 0.12 0.15 0.12 0.10 0.12 MSFT 0.17 0.12 0.19 0.14 0.15 GOOG 0.13 0.10 0.14 0.15 0.14 ΜΕΤΑ 0.16 0.12 0.15 0.14 0.21 Assuming there is a risk-free asset available in addition to these 5 risky assets, determine the portfolio weightings for each of these stocks of the unique fund F as defined in the One-fund theorem of Modern Portfolio Theory. Note that short positions (negative weights) are permissible and the sum of all the weights must be equal to one. The annual risk-free rate is 8%. What is the optimal portfolio weight for Apple, Inc. (ticker: AAPL)? Please express your answer in decimal (not percentage) form and round your numerical answer to two decimal places. The top 5 stocks in the S&P 500 index, when ranked by market capitalization, make up 22% of the total market capitalization of the S&P 500 index. Numerical estimates of the mean (or expected) rates of return values of these top five stocks, expressed in decimal (not percentage) form, are listed in the table below. STOCK Apple, Inc. Amazon.com Inc. Microsoft Corp. Alphabet, Inc. Meta Platforms, Inc TICKER AAPL AMZN MSFT GOOG ΜΕΤΑ MEAN RETURN 0.69 0.65 0.44 0.36 0.41 The variance of returns (entries on the main diagonal) and covariances between returns of these top five stocks, expressed in decimal (not percentage) form, are as follows: AAPL AMZN MSFT GOOG ΜΕΤΑ AAPL 0.21 0.12 0.17 0.13 0.16 AMZN 0.12 0.15 0.12 0.10 0.12 MSFT 0.17 0.12 0.19 0.14 0.15 GOOG 0.13 0.10 0.14 0.15 0.14 ΜΕΤΑ 0.16 0.12 0.15 0.14 0.21 Assuming there is a risk-free asset available in addition to these 5 risky assets, determine the portfolio weightings for each of these stocks of the unique fund F as defined in the One-fund theorem of Modern Portfolio Theory. Note that short positions (negative weights) are permissible and the sum of all the weights must be equal to one. The annual risk-free rate is 8%. What is the optimal portfolio weight for Apple, Inc. (ticker: AAPL)? Please express your answer in decimal (not percentage) form and round your numerical answer to two decimal places. The top 5 stocks in the S&P 500 index, when ranked by market capitalization, make up 22% of the total market capitalization of the S&P 500 index. Numerical estimates of the mean (or expected) rates of return values of these top five stocks, expressed in decimal (not percentage) form, are listed in the table below. STOCK Apple, Inc. Amazon.com Inc. Microsoft Corp. Alphabet, Inc. Meta Platforms, Inc TICKER AAPL AMZN MSFT GOOG ΜΕΤΑ MEAN RETURN 0.69 0.65 0.44 0.36 0.41
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Related Book For
Principles of Corporate Finance
ISBN: 978-0072869460
7th edition
Authors: Richard A. Brealey, Stewart C. Myers
Posted Date:
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