If the price of stock 1 falls to 90 and the price of stock 2 rises to 150, what is the return on my portfolio?

I have $5m to invest in two stocks: 75% of my capital is invested in stock 1 which has price 100 and the rest is invested in stock 2, which has price 125.

If the price of stock 1 falls to 90 and the price of stock 2 rises to 150, what is the return on my portfolio?
A . -2.50%
B . -5%
C . 2.50%
D . 5%

View Answer

Answer: A