Suppose you invest in 100 shares of NAB at $40 per share and 100 shares of WES at $25 per share. If the price of NAB increases to $45 and the price of WES decreases to $22 per share, what is the return on your portfolio?

Question

Quizplus · Accepted Answer

The return on the NAB investment is (45-40)/40 = 12.5%. The return on the WES investment is (22-25)/25 = -12%. The overall return on the portfolio is (12.5% - 12%)/2 = 0.25%.

Suppose You Invest in 100 Shares of NAB at $40