Respuesta :
Answer:
option (D) - 1.54%
Explanation:
Number of share of Harley- Davidson (HOG) = 100
Number of share of Yahoo(YHOO) = 230
Purchase price of share of Harley- Davidson (HOG) = $40 per share
Purchase price of of share of Yahoo(YHOO) = $25 per share
Final price of the share of Harley- Davidson (HOG) = $50
Increase in price of the share of Harley- Davidson (HOG) = $50 - $40 = $10
Final price of the share of Yahoo(YHOO) = $20
Increase in price of the share of Yahoo(YHOO) = $20 - $25 = - $5
here, negative sign means the loss
Now,
Total amount invested = 100 × $40 + 230 × $25
= 4,000 + 5,750
= $9,750
also,
Total net gain from shares = $10 × 100 - $5 × 230
= 1,000 - 1,150
= -150
return on your portfolio = [tex]\frac{\textup{Net gain }}{\textup{Amount invested}}\times100\%[/tex]
= [tex]\frac{\textup{-150}}{\textup{9,750}}\times100\%[/tex]
= - 1.538% ≈ - 1.54%
option (D) - 1.54%
