2 ) At end of Day 1, I invest equal amounts of money in shares of company A and B. By end of Day 2,
2) At end of Day 1, I invest equal amounts of money in shares of company A and B.
By end of Day 2, the price of company A shares has doubled and the price of company B shares has halved (compared to Day 1 price). What is the return on my entire investment from Day 1 to Day 2 ? What are the weights of my portfolio at the end of Day 2 ? At the end of Day 3, the price of company A shares has halved and the price of company B shares has quadrupled (compared to Day 2 price).
What is the return on my investment from end of Day 1 to end of Day 3 ?
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