Question
18. Tims portfolio contains two stocks, lightco an hineco Last year his portfolio returned 14 percent. Lightcos return was 5 percent and Shineco returned 20
18. Tims portfolio contains two stocks, lightco an hineco Last year his portfolio returned 14 percent. Lightcos return was 5 percent and Shineco returned 20 percent. What are the weights of each in Tims portfolio? The following year Tim adds a third stock, Brightco and reallocates his funds among the three stocks. Lightco and Shineco have the same weight in the portfolio, and Brightcos weight is one-half of Lightco. During the year Lightco returns 10 percent, Shieco returns 12 percent, and Brightco loses 5 percent. What was the return his portifolio?
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