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QUESTION 1. [(a. = 4 + 4 + 4 = 12 Marks) + (b. = REC'NS = 3 Marks] Sadie Strong holds a portfolio which
QUESTION 1. [(a. = 4 + 4 + 4 = 12 Marks) + (b. = REC'NS = 3 Marks] Sadie Strong holds a portfolio which comprises shares in three companies, Good Itd, Better Ltd and Best Ltd. The following table shows the number of shares and the initial and end prices for each of these shares over 2019. Company Good Ltd Better Ltd Best Ltd Number of shares 800 1,000 2,000 Share Price at 1.1 2019 $12,00 8.00 30.00 Share price at 31.12.2019 $12.48 8.80 34.20 Calculate the percentage return enjoyed by Sadie's portfolio over 2019 by each of the following methods: {Under each method, show answers as percentages, correct to 2 decimal places.] i. The equal-weighted return. ii. The price-weighted return. iii. The value weighted return. b. Which of the above methods provides the most accurate calculation of the portfolio return over 2019? Give reasons
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