Question

You own the following stocks in your portfolio. What is the portfolio return? Stock Invested Amount...

You own the following stocks in your portfolio. What is the portfolio return?

Stock Invested Amount Return
A 39,388 -4.48
B 43,939 25.40
C 32,229 28.56
D 7,602 15.34
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Answer #1
Total Portfolio value = Value of A + Value of B + Value of C + Value of D
=39388+43939+32229+7602
=123158
Weight of A = Value of A/Total Portfolio Value
= 39388/123158
=0.3198
Weight of B = Value of B/Total Portfolio Value
= 43939/123158
=0.3568
Weight of C = Value of C/Total Portfolio Value
= 32229/123158
=0.2617
Weight of D = Value of D/Total Portfolio Value
= 7602/123158
=0.0617
Return of Portfolio = Weight of A*Return of A+Weight of B*Return of B+Weight of C*Return of C+Weight of D*Return of D
Return of Portfolio = -4.48*0.3198+25.4*0.3568+28.56*0.2617+15.34*0.0617
Return of Portfolio = 16.05%
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