Portfolio weights of each stock

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1. If you own 650 shares of Xerox at $19.04, 750 shares of Qwest at $9.85, and 450 shares of Liz Claiborne at $46.43, what are the portfolio weights of each stock? (Round your answers to 3 decimal places.)

Portfolio weights  Xerox   Qwest   Liz Claiborne

2. If you own 350 shares of Alaska Air at $52.48, 400 shares of Best Buy at $60.92, and 200 shares of Ford Motor at $8.91, what are the portfolio weights of each stock? (Round your answers to 3 decimal places.)

Portfolio weights  Alaska Air   Best Buy   Ford Motor

3. Table 9.2 Average Returns for Bonds  

Bonds  1950 to 1959Average  0.0%  1960 to 1969Average  1.6   1970 to 1979Average  5.5   1980 to 1989Average  13.9   1990 to 1999Average  9.9   2000 to 2009Average  8.3 

Table 9.4 Annual Standard Deviation for Bonds

Bonds  1950 to 1959  4.5%  1960 to 1969  6.2   1970 to 1979  6.8   1980 to 1989  15.8   1990 to 1999  12.9   2000 to 2009  10.9    Calculate the coefficient of variation of the risk-return relationship of the bond market (Use the above Tables) during each decade since 1950. (Round your answers to 2 decimal places.)

DecadeCoV  1950sNot Available    1960s   1970s   1980s   1990s   2000s

4. Following are three economic states, their likelihoods, and the potential returns:    Economic State  Probability Return  Fast growth  0.24  38 %  Slow growth  0.51  6   Recession  0.25  -34   

Determine the standard deviation of the expected return. (Round your answer to 2 decimal places.)

Standard deviation %

5. Following are three economic states, their likelihoods, and the potential returns: 

Economic State Probability Return  Fast growth 0.20 41 %  Slow growth 0.62 16   Recession 0.18 -34  

Determine the standard deviation of the expected return. (Do not round intermediate calculations and round your answer to 2 decimal places.)

Standard deviation %

Reference no: EM131795448

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