Ralph Saundersons portfolio includes both stocks and a corporate bond. The total amount of funds that Ralph
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Stock Return
Abbott, Inc. ......... 20.1%
Randicorp ......... 12.5
Salvidore Co. ......... 2.4
Of the $40,000 invested in the stocks, 50 percent is invested in Randicorp and the rest is divided equally between Abbott, Inc., and Salvidore Company. The most recent one-year return on the bond was 6 percent.
a. How much does Ralph have invested in each of the stocks?
b. If Ralph’s portfolio included only the stocks, what would be his most recent one-year return?
c. What is the most recent one-year return earned by Ralph on the entire portfolio?
Stocks
Stocks or shares are generally equity instruments that provide the largest source of raising funds in any public or private listed company's. The instruments are issued on a stock exchange from where a large number of general public who are willing... Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...
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