Finance

Basic 1.The portfolio burden of an addition is measure investment in that addition divided by the descend portfolio value. First, we will uncovering the portfolio value, which is: re spirite value = 95($53) + 120($29) = $8,515 The portfolio cargo for separately(prenominal) stock is: WeightA = 95($53)/$8,515 = .5913 WeightB = 120($29)/$8,515 = .4087 2.The judge incur of a portfolio is the sum of the lading of apiece asset prison term the judge die of individually asset. The supply value of the portfolio is: nubble value = $1,900 + 2,300 = $4,200 So, the judge government issue of this portfolio is: E(Rp) = ($1,900/$4,200)(0.10) + ($2,300/$4,200)(0.15) = .1274 or 12.74% 3.The expected knuckle under of a portfolio is the sum of the weight down of each asset lengthiness the expected relapse of each asset. So, the expected slide by of the portfolio is: E(Rp) = .40(.11) + .35(.17) + .25(.14) = .1385 or 13.85% 4.Here we are given the expected rejoinder of the portfolio and the expected return of each asset in the portfolio and are asked to find the weight of each asset. We tolerate theatrical role the equality for the expected return of a portfolio to solve this problem. Since the total weight of a portfolio must(prenominal) equal 1 (100%), the weight of buy in Y must be unity minus the weight of behave X. Mathematically speaking, this means: E(Rp) = .129 = .16wX + .

10(1 wX) We can now solve this equation for the weight of Stock X as: .129 = .16wX + .10 .10wX .029 = .06wX wX = 0.4833 So, the dollar sum of money invested in Stock X is the weight of Stock X times the total portfolio value, or: investment funds in X = 0.4833($10,000) = $4,833.33 And the dollar do invested in Stock Y is: Investment in Y = (1 0.4833)($10,000) = $5,166.67 5.The expected return of an asset is the sum of the hazard of each return occurring times the probability of that return occurring. So, the expected return of the asset is: E(R) = .2(.09) + .5(.11) + .3(.23) =...If you want to occupy a full essay, show it on our website: Ordercustompaper.com

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