Ex2. Suppose you bought 100 shares of stock A at $30 per share, 250 shares of stock B at $20 per share, and 300 shares of stock C at $40 per share. If returns were 10% on stock ,30% on stock B, and 5% on stock C respectively for the year, what rate of return did you make on your portfolio? Amount invested on stock A=$30100=$3,000 Amount invested on stock B=$20250=$5,000 Amount invested on stock C=$40300=$12,000 Total investment (portfolio, at time =0 ) =$3000+$5000+$12000=$20,000 Weight of stock A=$3000/$20000=0.15 Weight of stock B=$5000/$20000=0.25 Weight of stock C=$12000/$20000=0.60 Portfolio return (rate of return on the portfolio) =0.1510%+0.2530%+0.65%=12% HOMEWORK I: Given the above information for stocks A, B, and C, calculate the rate of return for the following investors: Sarah: Bought 500 shares of A,150 shares of B,50 shares of C Susie: Bought 100 shares of A,250 shares of B,300 shares of C Mike: Bought 200 shares of A,300 shares of B,200 shares of C Steve: Bought 400 shares of A, 200 shares of B,100 shares of C