Your portfolio consists of 80 shares of CSH and 60 shares of EJH, which you just
ID: 2621169 • Letter: Y
Question
Your portfolio consists of 80 shares of CSH and 60 shares of EJH, which you just bought at $18 and $29 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to $20 and EJH decreases to $27, what is the return on your portfolio? a. What fraction of your portfolio is invested in CSH? In EJH? The fraction invested in CSH is .96. (Round to one decimal place.) The fraction invested in EJHis %. (Round to one decimal place.) b. If CSH increases to $20 and EJH decreases to $27, what is the return on your portfolio? The return on the portfolio is %. (Round to one decimal place.)Explanation / Answer
a.
Particulars
Qty
Price
Qty x Price
Fraction
CSH
80
18
1440
45.3%
EJH
60
29
1740
54.7%
Total A
3180
CSH fraction investment = 1440/3180 = 45.3%
EJH fraction investment = 1740/3180 = 54.7%
b.
Revised table
Particulars
Qty
Price
Qty x Price
Fraction
CSH
80
20
1600
0.496894
EJH
60
27
1620
0.503106
Total B
3220
Return on portfolio = (Total B - Total A)/Total A = (3220-3180)/3180
Return on portfolio = 1.26%
Particulars
Qty
Price
Qty x Price
Fraction
CSH
80
18
1440
45.3%
EJH
60
29
1740
54.7%
Total A
3180
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