P8-3 Portfolio Return At the beginning of the month, you owned $12,000 of Ford Motor, $18,000 of Netflix, and $20,000 of Wayfair. The monthly returns for Ford Motor, Netflix, and Wayfair were 1.50 percent, 1.0 percent, and 1.50 percent. What is your monthly portfolio return? What is your effective annual portfolio return?

To solve, first you must calculate each stock's weight of the total portfolio. Times that weight for the stock's contribution to the portfolio return then sum all three stocks. See P7-1 from Week 3 for the annual return (EAR).