The price of Microsoft is $37 per share and that of Apple is $43 per share. The price of Microsoft increases to $42 per share after one year and to $47 after two years. Also, shares of Apple increase to $49 after one year and to $59 after two years. If your portfolio comprises 100 shares of each security, what is your portfolio return in year 1 and year 2

13.75% ; 16.48%

Explanation:

Year 0:

Microsoft: Current value = 100 at $37 = $3700

Apple: Current value = 100 at $43 = $4300

Portfolio value = $3700 + $4300 = $8000

Year 1:

Microsoft: value at year 1 = 100 at $42 = $4200

Apple: value at year 1= 100 at $49 = $4900

Portfolio value = $4200 + $4900 = $9100

Year 2:

Microsoft: value at year 2 = 100 at $47 = $4700

Apple: value at year 2 = 100 at $59 = $5900

Portfolio value = $4700 + $5900 = $10600

Therefore, Portfolio returns for year 1 will be:

= (value at the end of year 1 / current value) - 1

= (9100 / 8000) - 1

= 1.1375 - 1

= 0.1375

= 13.75%

Portfolio returns for year 2 will be:

= (value at the end of year 2 / value at the end of year 1) - 1

= (10600 / 9100) - 1

= 16.48%

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whole quiz

1. the sum of all activities involved in getting high-quality products into the marketplace

2.operations

3. the principle of looking at the supply chain as a whole in order to improve the overall flow through the system.

4. produced; performed

5. activities producing tangible products, such as radios, newspapers, buses, and textbooks.

6. activities producing intangible and tangible products, such as entertainment, transportation, and education.

7.   customer focus

8. analyzing a competitor's products to identify desirable improvements

9. the systematic direction and control of the processes that transform resources into finished projects that create value for and provide benefits to consumers.

10. operation management.

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