I have $5m to invest in two stocks: 75% of my capital is invested in stock 1 which has price 100 and the rest is invested in stock 2, which has price 125.
If the price of stock 1 falls to 90 and the price of stock 2 rises to 150, what is the return on my portfolio?
A . -2.50%
B . -5%
C . 2.50%
D . 5%
Answer: A
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