1. Portfolio Weights An investor owns $13,000 of Adobe Systems stock, $17,000 of Dow Chemical, and $27,000 of Office Depot. What are the portfolio weights of each stock?
Adobe System = 0.30, Dow Chemical = 0.23, Office Depot = 0.47
Adobe System = 0.23, Dow Chemical = 0.30, Office Depot = 0.47
Adobe System = 0.27, Dow Chemical = 0.33, Office Depot = 0.40
Adobe System = 0.33, Dow Chemical = 0.33, Office Depot = 0.33
2. Portfolio Return Year-to-date, Company O had earned a -3.70 percent return. During the same time period, Company V earned 9.6 percent and Company M earned 7.85 percent. If you have a portfolio made up of 40 percent Company O, 30 percent Company V, and 30 percent Company M, what is your portfolio return?
13.75%
3.755%
6.715%
21.15%