Reference no: EM132613845

Bloomberg Personal Finance (July/August 2001) included the following companies in its recommended investment portfolio. For a portfolio value of $25,000, the recommended dollar amounts allocated to each stock are shown. Class Midpoint Frequency 3-7 5 4 8-12 10 7 13-17 15 9 18-22 20 5 SELF test SELF test Portfolio Estimated Growth Rate Dividend Yield Company ($) (%) (%) Citigroup 3000 15 1.21 General Electric 5500 14 1.48 Kimberly-Clark 4200 12 1.72 Oracle 3000 25 0.00 Pharmacia 3000 20 0.96 SBC Communications 3800 12 2.48 WorldCom 2500 35 0.00 124 Chapter 3 Descriptive Statistics: Numerical Measures Compute the mean price per share and the standard deviation of the price per share for the Dow Jones Industrial Average companies. Summary In this chapter we introduced several descriptive statistics that can be used to summarize the location, variability, and shape of a data distribution. Unlike the tabular and graphical procedures introduced in Chapter 2, the measures introduced in this chapter summarize the data in terms of numerical values. When the numerical values obtained are for a sample, they are called sample statistics. When the numerical values obtained are for a population, they are called population parameters. Some of the notation used for sample statistics and population parameters follow. Price per Share Frequency $20-29 7 $30-39 6 $40-49 6 $50-59 3 $60-69 4 $70-79 3 $80-89 1 Number Read Frequency 0 15 1 10 2 40 3 85 4 350 Total 500

a. Using the portfolio dollar amounts as the weights, what is the weighted average estimated growth rate for the portfolio?

b. What is the weighted average dividend yield for the portfolio?