Portfolio weights and expected return


Financial Calculations: Portfolio Weights and Expected Return

You own a portfolio of 250 shares of firm A worth $60/share and 1500 shares of firm B worth $40/share. You expect a return of 4% for stock A and a return of 9% for stock B. Please provide the calculations for the given problems in an Excel spreadsheet.

(1) What are the portfolio weights and what is the expected return?

(2) Suppose firm A's share price falls to $48 and firm B's share price goes up to $44. What are the portfolio weights and what is the expected return in the changed scenario.

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Finance Basics: Portfolio weights and expected return
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