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Assume you're a financial consultant and one of your clients asked you to review her current per folio. She shows the holdings as follows: 15%
Assume you're a financial consultant and one of your clients asked you to review her current per folio. She shows the holdings as follows: 15% Ford Motor, 15% Tesla, 15% Toyota Motors, 20% S&P 500, 10% Apple, 10% Google, 15% IBM. She is interested in learning if her portfolio is apporpriately weighted and how she can maximize her returns while minmizing overall risk.
- Last year, the stocks showed her following returns: 8% Ford, 49% tesla, 6% Toyota, 12% S&P, 9% Apple, -1 Google, and -6% IBM. What would your client's overall weighted return have been if she held this exact portfolio in 2021?
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