(Answered) Suppose that in january the outcomes for the rates of

Finance

Suppose that in January the outcomes for the rates of return on Securities A and B are .09 and .15, respectively.

(a) If an investor had formed her portfolio (worth a total of $1,000) by allocating 60% of her funds to Security A and 40% of his funds to Security B, what is the rate of return on her portfolio for January?

(b) Suppose the investor had constructed her portfolio by selling short $200 worth of Security A, and investing the proceeds plus her initial capital of $1000 in Security B. Calculate the rate of return on the portfolio for January

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