What are the monthly simple returns of stock


Question: Suppose that Stock 1's monthly log return is 40% and that Stock 2's monthly log return is -60%. Your portfolio includes 70% of Stock 1 and 30% of Stock 2. Please compute the following:

(a). What are the monthly simple returns of Stock 1 and Stock 2?

(b). What is the monthly simple return of your portfolio?

(c). What is the annualized simple return of your portfolio?

 

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Finance Basics: What are the monthly simple returns of stock
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