an investor invests Rs 500 in each of the 4 companies whose shares are priced at Rs.10,5,20,and 2.There is 10%,20%,30%,40% return on each of the investments.what is the overall return on the portfolio.
Answers
Therefore the overall return on the portfolio is Rs. 500/-
Given:
The amount invested by the investor in each of the companies = Rs. 500
The value of shares of 4 companies is Rs. 10, Rs. 5, Rs. 20, and Rs. 2
The return on investment of 4 companies is 10%, 20%, 30%, and 40%.
To Find:
The overall return on the portfolio.
Solution:
The given question can be solved very easily as shown below.
Let the 4 companies be named A, B, C, and D.
The share value of A = Rs. 10
The share value of B = Rs. 5
The share value of C = Rs. 20
The share value of D = Rs. 2
The return on investment percentage of company A = 10%
The return on investment percentage of company B = 20%
The return on investment percentage of company C = 30%
The return on investment percentage of company D = 40%
The number of shares of company A owned = 500/10 = 50
⇒ The total profit earned from company A = ( 10% of 10 ) × 50 = 0.1 × 10 × 50 = Rs. 50
The number of shares of company B owned = 500/5 = 100
⇒ The total profit earned from company A = ( 20% of 5 ) × 100 = 0.2 × 5 × 100 = Rs. 100
The number of shares of company C owned = 500/20 = 25
⇒ The total profit earned from company A = ( 30% of 20 ) × 25 = 0.3 × 20 × 25 = Rs. 150
The number of shares of company D owned = 500/2 = 250
⇒ The total profit earned from company A = ( 40% of 2 ) × 250 = 0.4 × 2 × 250 = Rs. 200
Overall profit earned from 4 companies = 50 + 100 + 150 + 200 = 500
Therefore the overall return on the portfolio is Rs. 500/-
#SPJ2
Answer:
Rs, 500
Explanation:
Let's call the four businesses A, B, C, and D.
A's shares are worth 10 rupees.
B's shares are worth 5 rupees
C's shares are worth 20 rupees.
D shares are worth Rs. 2 each.
10% is the company A's return on investment percentage.
20% is the company B's return on investment percentage.
30% is the corporation C's return on investment percentage.
40% is the company D's return on investment percentage.
50 shares of Company A are owned out of 500 total shares.
The total profit made by firm A was equal to (10% of 10) x 50, or 0.1 x 10 x 50, or Rs. 50
100 shares of business B are owned out of 500/5 total shares.
The entire profit made by firm A is equal to (20% of 5) x 100 = 0.2 x 100 = Rs. 100
500/20 = 25 shares of Company C are held by the owner.
The entire profit made by firm A was calculated as follows: (30% of 20) 25 = 0.3 20 25 = Rs. 150.
250 shares of firm D are equal to 500 divided by two.
The total profit made by company A is equal to (40 percent of 2) x 250, or 0.4 x 250, or Rs. 200.
Profits from four companies added together equal 50, 100, 150, and 200, or 500.
Consequently, the portfolio's overall return is Rs. 500.
#SPJ5