Answered step by step
Verified Expert Solution
Question
1 Approved Answer
15. Weighted average Aa Aa At the beginning of the year, you invested $8,000 in four stocks, but the investment in each stock was not
15. Weighted average Aa Aa At the beginning of the year, you invested $8,000 in four stocks, but the investment in each stock was not equal. The amount split up in your portfolio is shown below Stock Stock A Stock B Stock C Stock D Amount invested $1,000 $2,000 $1,000 $4,000 Calculate the weight of each stock in the portfolio (the percentage invested in each stock) Weight of Stock A = Weight of Stock B - Weight of Stock C - Weight of Stock D = Now at the end of the year the stocks have produced the following stock returns: Stock Stock A Stock B Stock C Stock D Stock return 12% 39% 9% -15% The return on this stock portfolio is the weighted average of each of the component stocks' returns. Use the weights calculated above to determine the stock portfolio's return over the past year. o 18.375% O 13.87590 o 7.125% o 4.875% o 21.375%
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started