What are the portfolio weights of each stock

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Problem 1: An investor owns 10,000 dollars of Adobe Systems stock, 15,000 dollars of Dow Chemical, and 25,000 dollars of Office Depot. What are the portfolio weights of each stock?

a. Adobe Systems = 0.3333, Dow Chemical = 0.3333, Office Depot = 0.3333.

b. Adobe Systems = 0.2, Dow Chemical = 0.3, Office Depot = 0.5.

c. Adobe Systems = 0.3, Dow Chemical = 0.2, Office Depot = 0.5.

d. Adobe Systems = 0.2667, Dow Chemical = 0.3333, Office Depot = 0.4.

Problem 2: Which of the following returns is the average of the possible returns weighted by the likelihood of those returns occurring?

a. Efficient return.

b. Expected return.

c. Market return.

d. Required return.

Reference no: EM132833991

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