Question

You have below a table on the amount of investment and the average Rate of Return...

You have below a table on the amount of investment and the average Rate of Return on a portfolio of investments. Using the information in the table, prepare a table showing:

  1. The share of the total asset for each investment (A, B, C & D)
  2. What is the weighted average Rate of Return of the portfolio of investments?

Investment

(I)

Amount

Invested

Rate of

Return (K)

A

$25,000

8%

B

$35,000

7%

C

$42,000

10%

D

$48,000

4%

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