In this problem, we analyze the returns of the investment portfolios of two friends: Eli...
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Accounting
In this problem, we analyze the returns of the investment portfolios of two friends: Eli and John. Each of the two friends starts with an initial investment of $100,000. Eli invested her entire account in stocks of A (A). John invested 50% of his account in A, 30% in B (B), and the remainder in C (C). The information provided above applies to all questions in this problem.
Suppose at the end of one year, the investment in A went up by 20%, the investment in B went up by 10%, and the investment in C went down by 10%.
2a. Calculate the realized return of Eli's portfolio (in %).
2b. Calculate the realized return of John's portfolio (in %).
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