Solved

The Price of BHP Is $35 Per Share and That

Question 1

Multiple Choice

The price of BHP is $35 per share and that of RIO is $60 per share. The price of BHP increases to $37 per share after one year and to $40 after two years. Also, shares of RIO increase to $65 after one year and to $70 after two years. If your portfolio comprises 100 shares of each security, what is your portfolio return in year 1 and year 2? Assume no dividends are paid.


A) 7.37%, 7.84%
B) 9.62%, 11.34%
C) 11.21%, 8.81%
D) 9.01%, 13.62%

Correct Answer:

verifed

Verified

Related Questions

Unlock this Answer For Free Now!

View this answer and more for free by performing one of the following actions

qr-code

Scan the QR code to install the App and get 2 free unlocks

upload documents

Unlock quizzes for free by uploading documents