Portfolios
Investor 1:10 of A, 20 of B, 30 of C, and 40 of D
Investor 2: 40 of A, 10 of B, 20 of C, and 30 of D
Investor 3:30 of A, 40 of B, 10 of C, and 20 of D
Investor 4: 20 of A, 30 of B, 40 of C, and 10 of D
Stock Market Performance
|
I |
II |
III |
IV |
|
Quarter |
Quarter |
Quarter |
Quarter |
Scrip A |
Up 10% |
Down 15% |
UP 10% |
Down 10% |
Scrip B |
UP 2% |
UP 1% |
UP 2% |
UP 2 |
Scrip C |
UP 1% |
UP 1% |
Down 5% |
Down 1% |
Scrip D |
UP 20% |
Down 15% |
UP 30% |
Down 10% |
In the light of the above which one of the following statement is correct?
Correct Answer: (b) Investor 1 has made the best investment
Note: From portfolios table, are see that investor 1 has invested more in scrip D, Which slow least down and that makes average investment by investor 1 is best compare to others.