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Let's say Tim invested 50% of his money to buy ABC Corp.'s shares and 50% of his money to buy DEF Corp.'s shares in
Let's say Tim invested 50% of his money to buy ABC Corp.'s shares and 50% of his money to buy DEF Corp.'s shares in 2017. From 2018 to 2021, ABC Corp. generated the total return percentage of 11%, 13%, 11%, 12%. DEF Corp. generated the total return percentage of -10%, 30%, -11%, and 29% during the same time period. What was the average rate of return for the portfolio (plain English: Tim's investment as a whole) from 2018 to 2021?
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Fundamentals of Investing
Authors: Scott B. Smart, Lawrence J. Gitman, Michael D. Joehnk
12th edition
978-0133075403, 133075354, 9780133423938, 133075400, 013342393X, 978-0133075359
