Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. question 1. [(a. = 4 + 4 + 4 = 12 marks) + (b. =..

QUESTION 1. [(a. = 4 + 4 + 4 = 12 Marks) + (b. =...

80.2K

Verified Solution

Question

Finance

image

QUESTION 1. [(a. = 4 + 4 + 4 = 12 Marks) + (b. = REC'NS = 3 Marks) a. Jennifer Strong has an investment portfolio which comprises shares in four companies, Breadth Ltd, Depth Ltd, Height Ltd and Length Ltd, The following table shows the initial value and end value for each of the shares over 2020. Company Value as at 1.1 2020 Value As at 31.12.2020 $ $ Breadth Ltd 10,000 12,500 Depth Ltd 20,000 15,000 Height Ltd 30,000 33,000 Length Ltd 40,000 48,000 Calculate the following percentage returns achieved by Jennifer's portfolio over 2020 by each of the following methods, assuming that she holds 5,000 shares in Breadth Ltd and 10,000 shares in each of the other 3 companies. i. The equal-weighted return. ii. The price-weighted return iii. The value weighted return. b. Which of the above methods provides the most accurate calculation of the portfolio return over 2020? Give reasons

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

Use the? common-size financial statements found? here: Common-Size Balance Sheet 2016 Cash and marketable securities $ 470 1.4 % Accounts receivable 5,990 18.2 Inventory 9,450 28.7 Total current assets $ 15,910 48.4 % Net...

Biology
1.2K views

Why do you think there are more diseases now that spread quickly and have a global impact?

Medical Sciences
1.2K views

what are prostaglandins released by?

Physics
1.2K views

The loop is in a magnetic field 0.22 T whose direction is perpendicular to the plane...

Physics
1.2K views

Example 9 12 a The near point of a hypermetropic person is 75 cm from...

Statistics
1.2K views

Score 8 49 12 7 12 answered Question 8 Score on last try 0 27...

Statistics
1.2K views

An article examined the graduate admissions process for evidence of gender bias The table shows...

Calculus
1.2K views

1 Given a function of g x on 2 6 and g x 0 on...

Accounting
1.2K views

Dorsey Company manufactures three products from a common input in a joint processing operation. Joint...

Accounting
1.2K views

Hie dount amount

Accounting
1.2K views

EcoMart establishes a $1,500 petty cash fund on May 2. On May 30 , the...

Finance
1.2K views

please answer this IRR, investment life, and cash inflows Oak Enterprises...