20. An investor has the following portoflio: Company Shares owned Shares Price Per share Expected return...
20. An investor has the following portoflio:
Company Shares owned
Shares Price Per share Expected return
125 $35 6.8%
100 $53 8.3%
250 $67 7.7%
175 $97 6.9%
What is the expected return of the portfolio?
A. 7.37%
B. 6.95%
C. 8.2%
D. 10.7%
Homework Answers
Ans A. 7.37%
| Shares (i) | Price Per share (ii) | Total Value (iii) = (i)* (ii) | Return (iv) | Return (iii) * (iv) | |
| 125 | 35 | 4,375.00 | 6.8% | 297.50 | |
| 100 | 53 | 5,300.00 | 8.3% | 439.90 | |
| 250 | 67 | 16,750.00 | 7.7% | 1,289.75 | |
| 175 | 97 | 16,975.00 | 6.9% | 1,171.28 | |
| Total | 650 | 252 | 43,400.00 | 29.7% | 3,198.43 |
| Expected Return= | Return / Total Value | ||||
| 3198.43 / 43400 | |||||
| 7.37% |
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