My friend WG (a.k.a. Wise Guy) recently bought some shares. He does not disclose neither the quantity nor the prices but would like to get your help in evaluating the profitability of his investment:
40% of his money - in shares of company A(P/E=35),
35% - shares of company B(P/E=20)
15% - company C(P/E=16),
& 10% - company D (P/E=12).
WG likes to get from you the value
of his portfolio's P/E index.
Rem: P/E ratio is defined as market value divided by earnings.
Say you spend 40+35+15+10=100.
Then since E=P/(P/E), total earnings = 40/35 + 35/20 + 15/16 + 10/12
and the aggregate P/E = 100/4.6636904761904761904761904761905
=21.442246330567964262922782386726
|
|
Posted by xdog
on 2020-04-27 16:14:09 |
different solution
