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A US investor is forming a portfolio comprised of three assets. They invest 40% in asset A; 20% in asset B, and 40% in asset
A US investor is forming a portfolio comprised of three assets. They invest 40% in asset A; 20% in asset B, and 40% in asset C. Use the information below, to calculate the return of the portfolio in the one year they held the three assets.
(You must show all calculations to receive credit)
Asset A | Asset B | Asset C | Exchange Rate | Exchange Rate |
Price0 = 5 | Price0 = 3 | Price0 = $10 | e0 = 0.64/$ | e0 = $1/ |
Price1 =6 | Price1 =6 | Price1 =$8 | e1 = 0.60/$ | e1 = $0.80/ |
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