Purchase Solution

Value weighted portfolio

Not what you're looking for?

Ask Custom Question

Given $100,000 to invest, construct a value weighted portfolio of the four stocks listed below:

Stock Price/Share $ #of shares(millions

Golden Seas 13 1000
Jacobs and Jacobs 22 1.25
MAG 43 30
PDJB 5 10

Purchase this Solution
Solution Summary

The expert constructs a value weighted portfolio of the given four stocks.

Solution Preview

Please see attached Excel file

Given $100,000 to invest, construct a value weighted portfolio of the four stocks listed below:

Stock                   Price/Share $                   # of shares (millions)

Golden Seas                 13 1000
Jacobs and ...

Purchase this Solution
Free BrainMass Quizzes
Academic Reading and Writing: Critical Thinking

Importance of Critical Thinking

Lean your Process

This quiz will help you understand the basic concepts of Lean.

Production and cost theory

Understanding production and cost phenomena will permit firms to make wise decisions concerning output volume.

IPOs

This Quiz is compiled of questions that pertain to IPOs (Initial Public Offerings)

Operations Management

This quiz tests a student's knowledge about Operations Management

View More Free Quizzes
Related BrainMass Solutions

  • Returns

    Information regarding amounts and dates of these cash flows and the portfolio's market value at various dates is shown below: Date Contribution (-) or withdrawal (+) Portfolio value 12/31 $0 $10,000 1/31 +956 9,000 2/28 -

  • Weighted Average Return on a Portfolio

    The expected value of a portfolio is the sum of the weighted-average expected return of each of the securities in the portfolio.

  • Portfolio Questions

    What is the weighted beta of portfolio? There is an interesting issue here: is the portfolio weighted based on FMV or Cost Basis? The answer to this will certainly impact the weighted beta of the portfolio.

  • Determine whether or not Neon should purchase the equipment.

    The standard deviation of the returns on the market portfolio is 0.16, and the expected market risk premium is 8.5 percent. Neon's bonds yield 11 percent per annum. The market value of the bonds is $24 million.

  • Beta of the Portfolio & WACC

    Beta of Portfolio = 1.01 * 3000/10000 + 1.37 * 7000/10000 = 1.01*0.30 + 1.37*0.70 = 0.303 + 0.959 = 1.262 or 1.26 Q2 WACC = Weight of Equity * Cost of Equity + Weight of Debt*Cost of Debt*(1 - tax rate) Total Value = Market Value of Equity

  • Price Weighted, Equal, Capitalization Weighted Index

    It includes a price-weighted average of 30 actively traded blue chip stocks. Equal Weighted Index: A type of weighting that gives the same weight, or importance, to each stock in a portfolio or index fund.

  • Portfolio Optimization Techniques

    First, calculate the return and risk of the equal weighted portfolio. 2. Below the equal weighted Portfolio you will see Portfolio A and Portfolio B. Compute the return and risk of each of these portfolios.

  • Scatter diagram, covariance, correlation, weighted average

    Using the portfolio dollar amounts as the wights, what is the wighted average estimated growth rate for the portfolio? b. What is the weighted average dividend yield for the portfolio. 65.

  • Factors to consider in creating an investment portfolio

    224395 Factors to consider in creating an investment portfolio What factors should be taken into consideration when creating an investment portfolio? How should the components of a portfolio be weighted?

View More Related Solutions