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Estimate the weights (w i ) for assets in the three portfolios given the followi

ID: 2633454 • Letter: E

Question

Estimate the weights (wi) for assets in the three portfolios given the following information about the portfolio holdings: Price Number of securities Market value Portfolio weights Percentages to one decimal place a. Stock A $25 200 Stock B $53 100 Stock C $119 100 Total Value Price Number of securities Market value Portfolio weights Percentages to one decimal place b. Bond A $975 10 Bond B $1,020 20 Bond C $888 10 Bond D $1,150 10 Total Value Price Number of securities Market value Portfolio weights Percentages to one decimal place c. Stock A $25 1,000 Stock C $119 500 Bond D $1,150 20 Total Value Price Number of securities Market value Portfolio weights Percentages to one decimal place d. Stock B $53 1,000 Stock C $119 100 Bond A $975 20 Bond B $1,020 10 Total Value Estimate the weights (wi) for assets in the three portfolios given the following information about the portfolio holdings: Price Number of securities Market value Portfolio weights Percentages to one decimal place a. Stock A $25 200 Stock B $53 100 Stock C $119 100 Total Value Price Number of securities Market value Portfolio weights Percentages to one decimal place b. Bond A $975 10 Bond B $1,020 20 Bond C $888 10 Bond D $1,150 10 Total Value Price Number of securities Market value Portfolio weights Percentages to one decimal place c. Stock A $25 1,000 Stock C $119 500 Bond D $1,150 20 Total Value Price Number of securities Market value Portfolio weights Percentages to one decimal place d. Stock B $53 1,000 Stock C $119 100 Bond A $975 20 Bond B $1,020 10 Total Value

Explanation / Answer

Estimate the weights (wi) for assets in the three portfolios given the following information about the portfolio holdings:

Price

Number of securities

Market value

Portfolio weights

Percentages to one decimal place

a.

Stock A

$25

200

5000

5000/22200=22.522

22.5

Stock B

$53

100

5300

23.873

23.9

Stock C

$119

100

11900

53.603

53.6

Total Value

22200

Price

Number of securities

Market value

Portfolio weights

Percentages to one decimal place

b.

Bond A

$975

10

9750

9750/40330=24.175

22.2

Bond B

$1,020

20

10200

25.291

25.3

Bond C

$888

10

8880

22.018

22.0

Bond D

$1,150

10

11500

28.514

28.5

Total Value

40330

Price

Number of securities

Market value

Portfolio weights

Percentages to one decimal place

c.

Stock A

$25

1,000

25000

25000/105500=23.696

23.7

Stock C

$119

500

59500

56.398

56.4

Bond D

$1,150

20

23000

21.800

21.8

Total Value

105500

Price

Number of securities

Market value

Portfolio weights

Percentages to one decimal place

d.

Stock B

$53

1,000

53000

53000/94600=56.02

56.0

Stock C

$119

100

11900

12.57

12.6

Bond A

$975

20

19500

20.61

20.6

Bond B

$1,020

10

10200

10.78

10.8

Total Value

94600

Estimate the weights (wi) for assets in the three portfolios given the following information about the portfolio holdings:

Price

Number of securities

Market value

Portfolio weights

Percentages to one decimal place

a.

Stock A

$25

200

5000

5000/22200=22.522

22.5

Stock B

$53

100

5300

23.873

23.9

Stock C

$119

100

11900

53.603

53.6

Total Value

22200

Price

Number of securities

Market value

Portfolio weights

Percentages to one decimal place

b.

Bond A

$975

10

9750

9750/40330=24.175

22.2

Bond B

$1,020

20

10200

25.291

25.3

Bond C

$888

10

8880

22.018

22.0

Bond D

$1,150

10

11500

28.514

28.5

Total Value

40330

Price

Number of securities

Market value

Portfolio weights

Percentages to one decimal place

c.

Stock A

$25

1,000

25000

25000/105500=23.696

23.7

Stock C

$119

500

59500

56.398

56.4

Bond D

$1,150

20

23000

21.800

21.8

Total Value

105500

Price

Number of securities

Market value

Portfolio weights

Percentages to one decimal place

d.

Stock B

$53

1,000

53000

53000/94600=56.02

56.0

Stock C

$119

100

11900

12.57

12.6

Bond A

$975

20

19500

20.61

20.6

Bond B

$1,020

10

10200

10.78

10.8

Total Value

94600

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