What is the return on a portfolio composed of the following 5 investments in equal amounts:...

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%

jeff jeffy answered 2 years ago

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