See why before you choose CIRE or RSE preparation

D. $15,000,000

Additional Learning:

Trainer's Tip: Check out the great video we have explaining this concept.

A stock split will change the number of shares and the share price. It will not impact the total market value of a client’s shares or the stock’s market capitalization.

A. 7.60%

Additional Learning:

Trainer's Tip: Check out the great video we have explaining this concept.

Rather than use the complex formula provided in the course, it is easier if you assume the total amount invested in the portfolio is $100,000 (a nice round number to work with) and deal with real dollars. This means:

• $25,000 would be invested in A (25%).
• $35,000 would be invested in B (35%).
• $15,000 would be invested in C (15%).
• $25,000 would be invested in D (25%).

Let’s calculate how much each investment would earn in dollars:

$25,000 x 8% (return) = $2,000
$35,000 x 7% (return) = $2,450
$15,000 x 11% (return) = $1,650
$25,000 x 6% (return) = $1,500

Total portfolio return:
($2,000 + $2,450 + $1,650 + $1,500) / $100,000 invested = 7.60%