Question
The price of Microsoft is $30 per share and that of Apple is $55 per share. The price of Microsoft increases to $40 per share
The price of Microsoft is $30 per share and that of Apple is $55 per share. The price of Microsoft increases to $40 per share after one year and to $43 after two years. Also, shares of Apple increase to $69 after one year and to $74 after two years. If your portfolio comprises 100 shares of each security, the return on your portfolio in year 1 (i.e., from now till end of year 1) and year 2 (i.e., from year 1 to year 2) are:
40.94% and 8.07%, respectively
32.47% and 13.21%, respectively
33.88% and 11.01%, respectively
28.24% and 7.34%, respectively
Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started