Portfolio Return At the beginning of the month,you owned $8,000 of Company G,$8,000 of Company S,and $3,000 of Company N.The monthly returns for Company G,Company S,and Company N were 7.80 percent,1.50 percent,and -0.75 percent.What is your portfolio return?
A)2.85 percent
B)3.80 percent
C)4.03 percent
D)8.55 percent

Question

Quizplus · Accepted Answer

The portfolio return is calculated by weighting each company's return by its proportion in the portfolio. The total portfolio value is $19,000. The weighted returns are: Company G: (8000/19000)*7.80%, Company S: (8000/19000)*1.50%, Company N: (3000/19000)*(-0.75%). Summing these gives a portfolio return of approximately 3.80%.

Portfolio Return at the Beginning of the Month,you Owned $8,000