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  3. 2) at end of day 1, i invest equal amounts of mone

2) At end of Day 1, I invest equal amounts of money in shares of company...

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Finance

2) At end of Day 1, I invest equal amounts ofmoney in shares of company A and B.

By end of Day 2, the price of company A shares has doubled andthe price of company B shares has halved (compared to Day 1price).

  • What is the return on my entire investment from Day 1 to Day 2?
  • What are the weights of my portfolio at the end of Day 2 ?
  • At the end of Day 3, the price of company A shares has halvedand the price of company B shares has quadrupled (compared to Day 2price).

What is the return on my investmentfrom end of Day 1 to end of Day 3 ?

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