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30. Dominant Portfolios Determine which one of these three portfolios dominates another.
Name the dominated portfolio and the portfolio that dominates it. Portfolio Blue has an expected
return of 7 percent and risk of 10 percent. The expected return and risk of portfolio Yellow are 13
percent and 10 percent, and for the Purple portfolio are 9 percent and 14 percent.
31. Dominant Portfolios Determine which one of these three portfolios dominates another.
Name the dominated portfolio and the portfolio that dominates it. Portfolio Blue has an expected
return of 13 percent and risk of 17 percent. The expected return and risk of portfolio Yellow are
15 percent and 19 percent, and for the Purple portfolio are 12 percent and 18 percent.
32. Portfolio Weights An investor owns $10,000 of Adobe Systems stock, $15,000 of Dow
Chemical, and $25,000 of Office Depot. What are the portfolio weights of each stock?
33. Portfolio Weights An investor owns $2,000 of Adobe Systems stock, $4,000 of Dow
Chemical, and $6,000 of Office Depot. What are the portfolio weights of each stock?
34. Portfolio Return Year-to-date, Company O had earned a -2.10 percent return. During the
same time period, Company V earned 8.00 percent and Company M earned 6.25 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?
35. Portfolio Return Year to date, Company Y had earned a 7 percent return. During the
same time period, Company R earned 9.25 percent and Company C earned -2.25 percent. If you
have a portfolio made up of 35 percent Y, 40 percent R, and 25 percent C, what is your portfolio
return?
36. Portfolio Return Year to date, Company Y had earned a 10.8 percent return. During the
same time period, Company R earned 12.20 percent and Company C earned -1.56 percent. If you
have a portfolio made up of 45 percent Y, 35 percent R, and 20 percent C, what is your portfolio
return?
37. Average Return The past five monthly returns for K and Company are 4.25 percent, 4.13
percent, -2.05 percent, 3.25 percent, and 7.25 percent. What is the average monthly return?
38. Average Return The past five monthly returns for K and Company are 2.28 percent, 2.64
percent, -1.05 percent, 4.25 percent, and 9.25 percent. What is the average monthly return?
39. Average Return The past five monthly returns for PG Company are 3.25 percent, -1.45
percent, 4.35 percent, 6.49 percent, and 3.75 percent. What is the average monthly return?
40. Standard Deviation The standard deviation of the past five monthly returns for K and
Company are 4.25 percent, 4.13 percent, -2.05 percent, 3.25 percent, and 7.75 percent. What is
the standard deviation?
41. Standard Deviation The standard deviation of the past five monthly returns for K and
Company are 2.28 percent, 2.64 percent, -1.05 percent, 4.25 percent, and 9.25 percent. What is
the standard deviation?
42. Standard Deviation The standard deviation of the past five monthly returns for PG
Company are 2.75 percent, -0.75 percent, 4.15 percent, 6.29 percent, and 3.84 percent. What is
the standard deviation?
43. Portfolio Weights If you own 400 shares of Air Line Inc. at $44.50, 500 shares of BuyRite
at $52.90, and 100 shares of MotorCity at $9.25, what are the portfolio weights of each stock?
44. Portfolio Weights If you own 100 shares of Air Line Inc. at $42.50, 250 shares of BuyRite
at $53.25, and 350 shares of MotorCity at $7.75, what are the portfolio weights of each stock?
45. Portfolio Return At the beginning of the month, you owned $6,000 of Company G, $8,000
of Company S, and $1,000 of Company N. The monthly returns for Company G, Company S, and
Company N were 7.25 percent, -1.50 percent, and -0.23 percent. What is your portfolio return?
46. Portfolio Return At the beginning of the month, you owned $8,000 of Company G, $8,000
of Company S, and $3,000 of Company N. The monthly returns for Company G, Company S, and
Company N were 7.80 percent, 1.50 percent, and -0.75 percent. What is your portfolio return?
47. Portfolio Weights You have $15,040 to invest. You want to purchase shares of Company
Air at $42.50, Company B at $51.50, and Company F at $9.75. How many shares of each company
should you purchase so that your portfolio consists of 20 percent Company A, 40 percent
Company B, and 40 percent Company F? Report only whole stock shares.
48. Portfolio Weights You have $45,050 to invest. You want to purchase shares of Company
Air at $10.25, Company B at $15.10, and Company F at $9.05. How many shares of each company
should you purchase so that your portfolio consists of 30 percent Company A, 50 percent
Company B, and 20 percent Company F? Report only whole stock shares.
49. Portfolio Return The following table shows your stock positions at the beginning of the
year, the dividends that each stock paid during the year, and the stock prices at the end of the
year. What is your portfolio percentage return?
