All categories

3 years ago

Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.

Business

1 answer:

Reika [66]3 years ago

8 0

Answer:

Weight of Golden Seas in the portfolio = 1.40%

Weight of Jacobs and Jacobs in the portfolio = 2.42%

Weight of MAG in the portfolio = 88.94%

Weight of PDJB in the portfolio = 7.24%

Explanation:

This can be done as follows:

Step 1: Calculation of value of each stock

Value of stock can be calculated using the following formula:

Value of a stock = Price per share * Number of shares outstanding................ (1)

Using equation (1), we have:

Value of Golden Seas = $14 * 1.43 millions = $20.02 millions

Values of Jacobs and Jacobs = $24 * 1.44 millions = $34.56 millions

Value of MAG = $43 * 29.52 millions = $1,269.36 millions

Values of PDJB = $9 * 11.48 millions = $103.32 millions

Step 2: Calculation of value of the portfolio

This can be obtained by adding the values of all the stocks in step 1 as follows:

Value of the portfolio = Value of Golden Seas + Values of Jacobs and Jacobs + Value of MAG + Values of PDJB = $20.02 millions + $34.56 millions + $1,269.36 millions + $103.32 millions = $1,427.26 millions

Step 3: Calculation of weight of each stock in the portfolio

The weight of each stock in the portfolio is obtained as the values of each stock divided by the value of the portfolio. This can be calculated as follows:

Weight of Golden Seas in the portfolio = $20.02 millions / $1,427.26 millions = 0.0140, or 1.40%

Weight of Jacobs and Jacobs in the portfolio = $34.56 millions / $1,427.26 millions = 0.0242, or 2.42%

Weight of MAG in the portfolio = $1,269.36 millions / $1,427.26 millions = 0.8894, or 88.94%

Weight of PDJB in the portfolio = $103.32 millions / $1,427.26 millions = 0.0724, or 7.24%

You might be interested in

The process of following a professional for a day or two to get a taste of what various careers entail and receive in-depth expo

valkas [14]

Answer:

Job shadowing

Explanation:

Job shadowing is a kind of on - the job training for new employees that requires them to follow and observe trained employee and professionals in the organisation to help them gain more knowledge and exposure about their duties, the workplace and their general Job requirement. It is an effective means of training newly employed workers because it assists them in getting first hand knowledge and information about how the work is done.

8 0

3 years ago

On March 1, 2018, Vintage Services issued an 8% long-term notes payable for $22,000. It is payable over a 16-year term in $

AveGali [126]

Answer:

True. The answer and procedures of the exercise are attached in a microsoft excel document.

Explanation:

Please consider the data provided by the exercise. If you have any question please write me back. All the exercises are solved in a single sheet with the formulas indications.

Download xlsx

7 0

3 years ago

When Motorola first entered the Mexican marketplace, the company wanted direct control of salespeople in major urban markets but

julia-pushkina [17]

Answer: company sales force

retail outlets sales representatives

Explanation: In simple words, company sales force refers to the sales representatives that are directly obligated to report to the sales manager of the company for their performance.

While the retail outlet sales persons report to the retail shop owners who have purchase the franchise of the company.

The later are employed by the organisation for strict monitoring of important markets while the former is being employed in less important ones.

8 0

3 years ago

The following table presents Generic Motors Company's production budget. GM's inventory policy is to have ending inventory equal

Irina18 [472]

Answer:

________________________________February__March__April

Ending inventory 20% of next Months sale _3400___3600__5,000

Beginning inventory__________________ 2,000__ 3400__ 3600

Budgeted sales _____________________ 13,000__17,000_ 18,000

Budgeted production_________________ 14,400__ 17,200_ 19,400

Firms wants to hold the finished goods inventry in order to deal with the future demand

Explanation:

Use the following formula to calculate the Budgeted production

Budgeted Production = Beginning Inventory - Ending Inventory + Busgeted Sales

Working

________________________________February__March__April

Ending inventory 20% of next Months sale _3400___3600__5,000

Less: Beginning inventory______________2,000__ 3400__ 3600

Add: Budgeted sales _________________ 13,000__17,000_ 18,000

= Budgeted production________________14,400__ 17,200_ 19,400

The finished goods inventory is held to deal with the future market demand. If the firm produce the uniits equals o the current demand then in case of increase in demand or unexpected demand increase the firms will not be able to fulfil the demand and will lose the opportunity.

6 0

3 years ago

If you had $500 to invest, what questions would you have as you decide how to invest your money?

solmaris [256]

Answer:

20,000

Explanation:

that's the answer thank you and stay safe and take care!!!

4 0

2 years ago

Given $100,000 to​ invest, construct a​ value-weighted portfolio of the four stocks listed below.

Given $100,000 to invest, construct a value-weighted portfolio of the four stocks listed below.