At the beginning of the month, you owned $15,500 of General Motors, $4,500 of Starbucks, and $9,000 of Nike. The monthly returns for General Motors, Starbucks, and Nike were 7.10 percent, -1.36 percent, and -0.54 percent. What is your portfolio return?
A)(-1.12 percent)
B)1.17 percent
C)2.54 percent
D)3.42 percent

Question

Quizplus · Accepted Answer

The portfolio return is calculated by weighting each asset's return by its proportion in the portfolio. The total portfolio value is $29,000. The weighted returns are: GM: (15500/29000)*7.10%, Starbucks: (4500/29000)*(-1.36%), Nike: (9000/29000)*(-0.54%). Adding these gives a portfolio return of approximately 3.42%.

At the Beginning of the Month, You Owned $15,500 of General