Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. at the beginning of the year, you invested $8,000

At the beginning of the year, you invested $8,000 in four stocks, but the investment...

50.1K

Verified Solution

Question

Finance

At the beginning of the year, you invested $8,000 in four stocks, but the investment in each stock was not equal. The amount split up in your portfolio is shown below:

Stock

Amount invested
Stock A $1,000
Stock B $2,000
Stock C $1,000
Stock D $4,000

Calculate the weight of each stock in the portfolio (the percentage invested in each stock).

Weight of Stock A =
Weight of Stock B =
Weight of Stock C =
Weight of Stock D =

Now at the end of the year the stocks have produced the following stock returns:

Stock

Stock return
Stock A 12%
Stock B -15%
Stock C 9%
Stock D 39%

The return on this stock portfolio is the weighted average of each of the component stocks' returns. Use the weights calculated above to determine the stock portfolio's return over the past year.

18.375%

10.50%

13.875%

15.00%

11.25%

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students

Finance
1.2K views

2. Consider an entrepreneur who has a business item. It requires an initial investment of $10...

Advance Math
1.2K views

Please use python or matlab. The function e^x −100x^2 =0 has three true solutions.Use secant method...

Finance
1.2K views

A company currently pays a dividend of $4 per share (D0= $4). It is estimated that...

Psychology
1.2K views

a. How would you describe the advantages and disadvantages of prenatal testing for DS? b. What information...

Physics
1.2K views

3) A car turning in a circle is acceleratring in the centripetal direction, even if the speed...

Accounting
1.2K views

Data Performance, a computer software consulting company, has three major functional areas: computer programming, information systems consulting,...

Statistics
1.2K views

Calculate the correlation coefficient for the relationship of interval variables X and Y in DATA...

Accounting
1.2K views

Can anyone help me with this? Thanks What Threatens Biodiversity

Accounting
1.2K views

Mickey and Jenny Porter file a joint tax return, and they itemize deductions. The Porters...

Accounting
1.2K views

Question 7) Assume that Tract Company uses a periodic inventory system and has these account...

Accounting
1.2K views

Meenach Corporation uses a job-order costing system with a single plantwide predetermined overhead rate based...

Finance
1.2K views

The following information can be found in ABC Co.'s financial statements: ...