Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

At the beginning of the year, you invested $8,000 in four stocks, but the investment in each stock was noc equal. The amount split up

image text in transcribed
image text in transcribed
At the beginning of the year, you invested $8,000 in four stocks, but the investment in each stock was noc equal. The amount split up in your portfolio is shown beliow: Calcislate the weight of each stock in the portfolio (the percentage invested in each stock). Weight of Steck. A= Weight of 5tock8 Weight of Stock C= Welght of Stock D = Now at the end of the year the stocks have produced the following stock returns: Now at the end of the year the stocks have produced the following stock returns: The retum an this stock portfolio is the weighted average of each of the component stocks' returns. Use the weights calculated above to setermine the stock portfolio's return over the past year. 10.50% 1,5046 11.25% 4,8755 18,375%

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

Fundamentals Of Investments

Authors: Bradford Jordan, Thomas Miller

4th Edition

0073314978, 9780073314976

More Books

Students also viewed these Finance questions