Suppose you invest in 200 shares of CBA at $70 per share and 200 shares of WOW at $20 per share. If the price of CBA increases to $80 and the price of WOW decreases to $18 per share, what is the return on your portfolio?

Question

Quizplus · Accepted Answer

The total initial investment is (200 * $70) + (200 * $20) = $14,000 + $4,000 = $18,000. The final value is (200 * $80) + (200 * $18) = $16,000 + $3,600 = $19,600. The return is (($19,600 - $18,000) / $18,000) * 100 = 8.89%.

Suppose You Invest in 200 Shares of CBA at $70