Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and $30 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to $23 and EJH decreases to $29, 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 %. (Round to one decimal place.)
Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and $30 per share, respectively. a. What fraction of your portfolio is invested in CSH? In EJH? b. If CSH increases to $23 and EJH decreases to $29, 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 %. (Round to one decimal place.)
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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Question
![**Portfolio Investment Exercise**
Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and $30 per share, respectively.
### Questions
a. **What fraction of your portfolio is invested in CSH? In EJH?**
b. **If CSH increases to $23 and EJH decreases to $29, what is the return on your portfolio?**
#### Calculations
1. **Fraction of Portfolio Invested**
- The fraction of capital invested in CSH and EJH is to be calculated.
2. **Investment Value Changes**
- Calculate the portfolio's return if the share prices change as given.
### Calculation for Fraction Invested:
a. **What fraction of your portfolio is invested in CSH? in EJH?**
\[ \text{The fraction invested in CSH is} \quad \_\_\%\quad \text{(Round to one decimal place.)} \]
**Note:**
Ensure to update the answers in the provided blanks after performing the necessary calculations. This practice helps students understand and analyze changes in portfolio values over time.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F93e3cd7e-a9a9-4aef-84c9-9b5be41d5a7f%2F25e79934-371b-49d0-9ce7-e70d51fce2a5%2F7avt9w6_processed.jpeg&w=3840&q=75)
Transcribed Image Text:**Portfolio Investment Exercise**
Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and $30 per share, respectively.
### Questions
a. **What fraction of your portfolio is invested in CSH? In EJH?**
b. **If CSH increases to $23 and EJH decreases to $29, what is the return on your portfolio?**
#### Calculations
1. **Fraction of Portfolio Invested**
- The fraction of capital invested in CSH and EJH is to be calculated.
2. **Investment Value Changes**
- Calculate the portfolio's return if the share prices change as given.
### Calculation for Fraction Invested:
a. **What fraction of your portfolio is invested in CSH? in EJH?**
\[ \text{The fraction invested in CSH is} \quad \_\_\%\quad \text{(Round to one decimal place.)} \]
**Note:**
Ensure to update the answers in the provided blanks after performing the necessary calculations. This practice helps students understand and analyze changes in portfolio values over time.
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