Answered

Amy invested in three companies: 1400 dollars for Apple, 1900 dollars for Google and 1700 dollars for Starbucks. Over the course of one year, she found that Apple went down 4 percent, Google went up 5 percent and Starbucks went up 3 percent. What is the average change in her portfolio?

Answer :

Loss in apple [tex]=1400\times \dfrac{4}{100}= 56[/tex]

Present value = 1400 - 56 = $1344 .

Loss in google [tex]= 1900\times \dfrac{5}{100}=95[/tex]

Present value = 1900 + 95 = $1995 .

Loss in Starbucks [tex]=1700\times \dfrac{3}{100}=51[/tex]

Present value = 1700 + 51 = $1751 .

Total investment , T = 1400 + 1900 + 1700 = $5000 .

Gain , G = 56 + 95 + 51 = $202 .

% increase [tex]=\dfrac{202}{5000}\times 100 = 4.04 \%[/tex]

Hence , this is the required solution .

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