C,S,I are stock investment F is bond investment If I want to perform a portfolio

Question

C,S,I are stock investment F is bond investment
If I want to perform a portfolio of 80% stock and 20% bonds, then how to calculate the returns? Individual Funds Annual Returns (10 Yr Summary) G Fund 4.93% 4.87% 3.75% 2.97% 2.81% 2.45% 1.47% 1.89% 2.31% 2.04% 2.94% F Fund 440% 709% 5.45% 5.99% 6.71% 789% 4.29% (1.68%) 6.73% 0.91% 4.74% C Fund 15.79% 5.54% (36.99%) 26.68% 15.06% 2.11% 16.07% 32.45% 13.78% 1.46% 736% S Fund 15.30% 5.49% (38.32%) 34.85% 29.06% (3.38%) 18.57% 38.35% 7.80% (2.92%) 8.03% Fund 26.32% | 11.43% (42.43%) 30.04% 7.94% (11.81%) 18.62% 22.1 3% (5.27%) (0.51 %) 3.20% Year 2006 2007 2008 2009 2010 2011 2012 2013 2014 2015 10 Yr Compound Percentages in () are negative

Explanation / Answer

The Portfolio consists of Stock investment in form of (C, S, I) and  Bond investment in form of F.

The return of portfolio is the weighted average return of all the investments in the portfolio.

Here I Calculate return for year 2006

Reurn for year 2006:-

   = 0.80 * Return of C, S and I investment + 0.20 * Return of F

   = 0.80 * (15.79 + 15.30 +26.32) + 0.20 * 4.40

= 0.80 * 57.41 + 0.20 * 4.40

= 45.928 + 0.88

   = 46.808 %

Conclusion:- Return for Year 2006 (Comprising of Stock investment in form of C, S, I and Bond investment in form of F) = 46.808 %

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