You own a portfolio that is 28 percent invested in Stock X, 43 percent in Stock

Question

You own a portfolio that is 28 percent invested in Stock X, 43 percent in Stock Y, and 29 percent in Stock Z. The expected returns on these three stocks are 9 percent, 12 percent, and 14 percent, respectively.

What is the expected return on the portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

What is the expected return on the portfolio? (Do not round intermediate calculations. Enter your answer as a percentage rounded to 2 decimal places (e.g., 32.16).)

Explanation / Answer

Expected Return of Portfolio = WXRX + WYRY + WZRZ

= (0.28 x 0.09) + (0.43 x 0.12) + (0.29 x 0.14)

= 0.0252 + 0.0516 + 0.0406

= 0.1174 or 11.74%

Answer is 11.74%

Related Questions

Navigate

• Browse (All)
• Browse Y
• Subjects

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.