Price of johnson and johnson increases, Accounting Basics

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Price of johnson and johnson increases

Problem:

Suppose you invest in 200 shares of Johnson and Johnson at $70 per share and 200 shares of yahoo at $20 per share.

Required:

Question: If the price of Johnson and Johnson increases to $80 and the price of Yahoo decreases to $18 per share, what is the return on your portfolio?

a. 9.76%

b. 11.21%

c. 12.21%

d. 8.89%

Note: Please describe comprehensively and provide step by step solution.

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Accounting Basics: Price of johnson and johnson increases

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