Suppose over the next year Ball has a return of 12.5%,Lowes has a return of 20%,and Abbott Labs has a return of -10%.The value of your portfolio over the year is:
A)$21,000.
B)$20,000.
C)$20,700.
D)$21,500.

Question

Quizplus · Accepted Answer

To calculate the value of the portfolio, we need to take into account the initial investments in each stock. Let's assume the initial investments were as follows:

- Ball: $10,000
- Lowe's: $5,000
- Abbott Labs: $5,000

Then, after one year, the value of each investment would be:

- Ball: $10,000 x 1.125 = $11,250
- Lowe's: $5,000 x 1.2 = $6,000
- Abbott Labs: $5,000 x 0.9 = $4,500

The total value of the portfolio would be the sum of these values:

$11,250 + $6,000 + $4,500 = $21,750

Therefore, the closest answer is choice C, which is $20,700.

Suppose Over the Next Year Ball Has a Return of 12.5%,Lowes