Proportion of market portfolio is comprised of each stock

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Reference no: EM132036594

1. A portfolio has three stocks long dash— 240 shares of Yahoo (YHOO), 130 shares of General Motors (GM), and 70 shares of Standard and Poor's Index Fund (SPY). If the price of YHOO is $30, the price of GM is $30, and the price of SPY is $130, calculate the portfolio weight of YHOO and GM

2. A stock market comprises 2500 shares of stock A and 2500 shares of stock B. The share prices for stocks A and B are $20 and $5, respectively. What proportion of the market portfolio is comprised of each stock?

3. UPS, a delivery services company, has a beta of 1.6?, and Wal-Mart has a beta of 0.6. The risk-free rate of interest is 6% and the market risk premium is 88%. What is the expected return on a portfolio with 40% of its money in UPS and the balance in Wal-Mart?

Reference no: EM132036594

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