In: Finance
What is the return on a portfolio composed of the following 5 investments in equal amounts: Investment A increased 5%, Investment B increased 12%, Investment C decreased 3%, Investment D increased 0.5% and investment E increased 7%.
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Please find the answer below.
Statement showing computation:
Return of A= 5%
Return of B= 12%
Return of C= -3%
Return of D= 0.5%
Return of E= 7%
Portfolio return= Sum of all returns/5
Portfolio return= (5+12-3+0.5+7)/5
Portfolio return= 21.5/5= 4.3%
Return on portfolio= 4.3%