At the start of the year you owned 8300 of IBM stock 12900 o

At the start of the year, you owned $8,300 of IBM stock, $12,900 of GE stock, $22,000 of Apple stock, and $5,600 of Bank of America stock. During the year, IBM, GE, Apple, and Bank of America returned 8.4 percent, -2.6 percent, -1.1 percent, and 9.9 percent, respectively. What is your portfolio\'s overall return for the year?

PLEASE SHOW WORKING(QUESTION IS WORTH 20 POINTS)

Total value=(8300+12900+22000+5600)=$48800

Portfolio return=Respective return*Respective weights

=(8300/48800*8.4)+(12900/48800*-2.6)+(22000/48800*-1.1)+(5600/48800*9.9)

which is equal to

=1.38%(Approx).

At the start of the year, you owned $8,300 of IBM stock, $12,900 of GE stock, $22,000 of Apple stock, and $5,600 of Bank of America stock. During the year, IBM,

At the start of the year you owned 8300 of IBM stock 12900 o

Solution

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