You own a portfolio that is 32 percent invested in Stock X, 47 percent in Stock

Question

You own a portfolio that is 32 percent invested in Stock X, 47 percent in Stock Y, and 21 percent in Stock Z. The expected returns on these three stocks are 12 percent, 15 percent, and 17 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).)

You own a portfolio that is 32 percent invested in Stock X, 47 percent in Stock Y, and 21 percent in Stock Z. The expected returns on these three stocks are 12 percent, 15 percent, and 17 percent, respectively.

Explanation / Answer

Hi,

Please find the detailed answer as follows;

Expected Return of the Portfolio = .32*12 + .47*15 + .21*17 = 14.46%

Answer is 14.46%.

Thanks.

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