Given $100,000 to invest, construct a value-weighed portfolio of the four stocks listed below.
Stocks Price/Share ($) Number of Shares Outstanding (millions)
Golden Seas 13 1000
Jacobs and Jacobs 22 1.25
MAG 43 30
PDJB 5 10
Portfolio Weight for Golden Seas =
Portfolio Weight for Jacobs and Jacobs =
Portfolio Weight for MAG =
Portfolio Weight for PDJB =
The capital assets pricing model is examined.