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Exercise

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.

Instructions

100 XP
  • 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.