Homework: Chapter 12 Homework Score: 0 of 1 pt P 12-22 (similar to) 8 of 15 (6 c

ID: 2558691 • Letter: H

Question

Homework: Chapter 12 Homework Score: 0 of 1 pt P 12-22 (similar to) 8 of 15 (6 complete) Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below Price/Share 12 Stock Golden Seas Jacobs and Jacobs MAG PDJB Number of Shares Outstanding (millions) 1.2 1.28 29.44 8.24 24 13 Enter the portfolio weight below: (Round to two decimal places.) % of Total Value (portfolio weight) Stock Golden Seas Enter your answer in the answer box and then click Check Answer parts remaining Clear All

Explanation / Answer

Solution:

Stock

Price / Share

Number of Shares Outstanding (millions)

Value of Shares (million)

(A)

(B)

(A*B)

Golden Seas

$12

1.20

$14.40

Jacobs and Jacobs

$24

1.28

$30.72

MAG

$44

29.44

$1,295.36

PDJB

$13

8.24

$107.12

Total Value of Portfolio

$1,447.60

Golden Seas (weight) = Value of Golden Seas $14.40 / Total Value of Portfolio $1,447.60 x 100

= 0.99475% or 0.99%

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