Asked by Anupama pandit on May 27, 2024
Verified
How must you allocate your money among a number of investments so that your portfolio's overall rate of return will be the same as the simple average of the rates of return on individual investments?
Portfolio
A collection of investments held by an individual or institution.
Rate of Return
The upward or downward shift in an investment's value over a designated period, quantified as a percentage of its initial value.
Simple Average
A simple average is a statistical measure that calculates the mean of a set of numbers by adding them together and then dividing by the count of those numbers.
- Execute fundamental procedures involving percentages to examine fiscal adjustments and investment opportunities.
Verified Answer
IH
Iyanna HolmesMay 29, 2024
Final Answer :
If you invest the same amount of money in each investment, each rate of return has the same importance. The portfolio's rate of return will then equal the simple average of the individual rates of return.
Learning Objectives
- Execute fundamental procedures involving percentages to examine fiscal adjustments and investment opportunities.