You own a portfolio that is 36 percent invested in Stock X, 20 percent in Stock

Question

You own a portfolio that is 36 percent invested in Stock X, 20 percent in Stock Y, and 44 percent in Stock Z. The expected returns on these three stocks are 9 percent, 17 percent, and 13 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

You own a portfolio that is 36 percent invested in Stock X, 20 percent in Stock Y, and 44 percent in Stock Z. The expected returns on these three stocks are 9 percent, 17 percent, and 13 percent, respectively. What is the expected return on the portfolio? (Do not round intermediate calculations. Enter your answer as a percent rounded to 2 decimal places, e.g., 32.16.)

Explanation / Answer

Expected return on the portfolio:

= 9%×0.36+17%×0.20+13%×0.44

= 12.36%

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