You own a portfolio that has $1,100 invested in Stock A and $1,600 invested in S

Question

You own a portfolio that has $1,100 invested in Stock A and $1,600 invested in Stock B. If the expected returns on these stocks are 12 percent and 15 percent, respectively, the expected return on the portfolio is percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

You own a portfolio that has $1,100 invested in Stock A and $1,600 invested in Stock B. If the expected returns on these stocks are 12 percent and 15 percent, respectively, the expected return on the portfolio is percent. (Do not include the percent sign (%). Round your answer to 2 decimal places. (e.g., 32.16))

Explanation / Answer

the expected return on the portfolio = 1100/2700x12+(1600/2700x15)= 13.78%

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