Your portfolio consists of 125 shares of CSH and 60 shares of EJH, which you just bought at $20 and $31 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to $21 and EJH decreases to $28, what is the return on your portfolio?

Your portfolio consists of 125 shares of CSH and 60 shares of EJH, which you just bought at $20 and $31 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to $21 and EJH decreases to $28, what is the return on your portfolio?

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 25P

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Question

Your portfolio consists of 125 shares of CSH and 60 shares of EJH, which you just bought at $20 and $31 per
share, respectively.
a. What fraction of your portfolio is invested in CSH? In EJH?
b. If CSH increases to $21 and EJH decreases to $28, 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 57.3 %. (Round to one decimal place.)
The fraction invested in EJH is 42.7 %. (Round to one decimal place.)
b. If CSH increases to $21 and EJH decreases to $28, what is the return on your portfolio?
The return on the portfolio is
%. (Round to one decimal place.)

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