Compute portfolio shares and portfolio returns
At the end of September 2004, suppose you have $10,000 to invest in Amazon and Costco over the next month.
Compute your portfolio shares if you invest $8,000 in Amazon and $2,000 in Costco. Moreover, compute the simple monthly return on the portfolio and assume that no dividends were paid.
This exercise is part of the course
Intro to Computational Finance with R
Exercise instructions
- Compute the portfolio share of your Amazon stocks and assign it to
xA. - Compute the portfolio share of your Costco stocks and assign it to
xC. - Compute the simple monthly return on the portfolio and print the result to the console.
Hands-on interactive exercise
Have a go at this exercise by completing this sample code.
# The simple returns on Amazon (RA) and Costco (RC) are still in your workspace
# Portfolio shares
xA <-
xC <-
# Simple monthly return