Suppose that in January the outcomes for the rates of return on Securities A and B are 09 and 15, respectively (a) If an investor had formed her portfolio (worth a total of $1,000) by allocating 60 of her funds to Security A and 40 of his funds to Security B, what is the rate of return on her portf...

a Calculation of rate of return on portfolio for January ...

Suppose that in January the outcomes for the rates of return on Securities A and B are

Question:

Suppose that in January the outcomes for the rates of return on Securities A and B are .09 and .15, respectively.
(a) If an investor had formed her (worth a total of $1,000) by allocating 60% of her funds to Security A and 40% of his funds to Security B, what is the rate of return on her for January?
(b) Suppose the investor had constructed her by selling short $200 worth of Security A, and investing the proceeds plus her initial capital of $1000 in Security B. Calculate the rate of return on the for January.

Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...