Calculate Portfolio Investment

What fraction of your portfolio is invested in CSH? What fraction of your portfolio is invested in EJH?

Your portfolio consists of 100 shares of CSH and 50 shares of EJH, which you just bought at $20 and $30 per share, respectively.

Answer:

The fraction of the portfolio invested in CSH is approximately 67% and the fraction invested in EJH is approximately 33%.

To calculate the fraction of your portfolio invested in CSH and EJH, you first need to calculate the total value of your portfolio. The value of your CSH shares is 100 * $20 = $2,000. The value of your EJH shares is 50 * $30 = $1,500. Therefore, the total value of your portfolio is $2,000 + $1,500 = $3,500.

The fraction of your portfolio invested in CSH is the value of CSH divided by the total portfolio value, which is $2,000 / $3,500 = 0.5714 or approximately 57%. The fraction of your portfolio invested in EJH is the value of EJH divided by the total portfolio value, which is $1,500 / $3,500 = 0.4286 or approximately 43%.

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