What are the portfolio weights of the three stocks in your


Suppose Autodesk stock has a beta of 2.10 whereas Costco stock has a beta of 0.72 If the risk-free interest rate is 3 % and the expected return of the market portfolio is 13.0 % what is the expected return of a portfolio that consists of 70 % Autodesk stock and 30 % Costco stock, according to the CAPM? shares of Colgate-Palmolive. The current share prices and expected returns ofApple, Cisco, and Colgate-Palmolive are, respectively, $ 506 $ 25 $ 100 and 12 % 10 % 8 % a. What are the portfolio weights of the three stocks in your portfolio? b. What is the expected return of your portfolio? c. Suppose the price of Apple stock goes up by $ 22 Cisco rises by $ 7 and Colgate-Palmolive falls by $ 11 What are the new portfolio weights? d. Assuming the stocks' expected returns remain the same, what is the expected return of the portfolio at the new prices?

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What are the portfolio weights of the three stocks in your
Reference No:- TGS02748653

Expected delivery within 24 Hours