Stocks: 50% of portfolio - Advanced Micro Devices, Inc. (AMD) starting price: 30.9$ Closing price: 29.94$ 50% of...

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Finance

Stocks:
50% of portfolio - Advanced Micro Devices, Inc. (AMD)
starting price: 30.9$ Closing price: 29.94$
50% of portfolio - Canopy Growth Corp (CGC)
Starting price: 24.21$ Closing price: 27.31$
Report the overall realized return on your investmentportfolio.
Don’t confuse expected and realized returns.
This is expected return:
E[Rp]=w1R1+w2R2+w3R3+w4R4
wi=weight of stock ‘’i’’ in your portfolio
This is realized one:
Ri=realized return of asset ‘’i’’= (Price @ end – Price @beginning)/Price @ beginning
OR
more formally:
R=(P[t+1]-P[t])/P[t]
Example:
The cost of your portfolio at t=0 is 100 euro. At t=1, yourportfolio costs 107 euro.
Realized return for the period= (107-100)/100=7%
starting price: 24.21$ Closing price:27.31$

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4.5 Ratings (940 Votes)

Proportion of stock Advanced Micro Devices AMD 50 or 05 Starting price of AMD 309 Closing price of AMD 2994 Proportion of Canopy Growth Corporation CGC 50 or 05 Starting price of CGC 2421 Closing price of CGC See Answer

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Stocks:50% of portfolio - Advanced Micro Devices, Inc. (AMD)starting price: 30.9$ Closing price: 29.94$50% of portfolio - Canopy Growth Corp (CGC)Starting price: 24.21$ Closing price: 27.31$Report the overall realized return on your investmentportfolio.Don’t confuse expected and realized returns.This is expected return:E[Rp]=w1*R1+w2*R2+w3*R3+w4*R4wi=weight of stock ‘’i’’ in your portfolioThis is realized one:Ri=realized return of asset ‘’i’’= (Price @ end – Price @beginning)/Price @ beginningORmore formally:R=(P[t+1]-P[t])/P[t]Example:The cost of your portfolio at t=0 is 100 euro. At t=1, yourportfolio costs 107 euro.Realized return for the period= (107-100)/100=7%starting price: 24.21$ Closing price:27.31$