Question

    Karim has purchase 100 shares of company X and company Y

    each at per share price of Rs.120 and Rs.150 respectively. After six months the share price of company X is Rs.100 and of the company Y is Rs.200. What is the annual return Karim gets on the portfolio?
    A 11.11% Correct Answer Incorrect Answer
    B 22.22% Correct Answer Incorrect Answer
    C 33.33% Correct Answer Incorrect Answer
    D 25.27% Correct Answer Incorrect Answer
    E 17.78% Correct Answer Incorrect Answer

    Solution

    Value of the portfolio at the time of buying = 120x100 + 150 x 100 =27,000 Exisitng value of the portfolio = 100x100 + 200x 100= 30,000 % gain in six month = (30,000-27,000)/27,000 = 11.11% Therefore annual return = 22.22%

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