Easy Finance 101 Question *Will give points ASAP* What are the portfolio weights
ID: 2646514 • Letter: E
Question
Easy Finance 101 Question *Will give points ASAP*
What are the portfolio weights for a portfolio that has 156 shares of Stock A that sell for $45 per share and 130 shares of Stock B that sell for $30 per share?
Portfolio weights :
Stock A =
Stock B =
Suppose a stock had an initial price of $52 per share, paid a dividend of $1.00 per share during the year, and had an ending share price of $46.
Compute the percentage total return. (Do not round intermediate calculations. Negative amount should be indicated by a minus sign. Enter your answer as a percent rounded to 2 decimal places (e.g., 32.16).)
What was the dividend yield and the capital gains yield? (Do not round intermediate calculations. Negative amounts should be indicated by a minus sign. Enter your answers as a percent rounded to 2 decimal places (e.g., 32.16).)
Suppose a stock had an initial price of $52 per share, paid a dividend of $1.00 per share during the year, and had an ending share price of $46.
Explanation / Answer
Statement showing computation on the basis of Market Value Stock No of shares MP Market Value Weight(a) Stock A 156.00 45.00 7,020.00 0.6429 Stock B 130.00 30.00 3,900.00 0.3571 10,920.00 1.0000 Stock A weight 0.64 Stock B weight 0.36 Initial Price 52.00 Ending price 46.00 Dividend 1.00 Capital Gain(46-52) (6.00) Return = 1 +(46-52) Return = -5 Return in % = -5/52 Return in % = -9.62% Dividend yield = 1/52 Dividend yield = 1.92% Capital Gain yield = Capital Gain/price Capital Gain yield = -6/52 Capital Gain yield = -11.54%
Related Questions
drjack9650@gmail.com
Navigate
Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.