You have $57,000. You put 16% of your money in a stock with an expected return o

Question

You have $57,000. You put 16% of your money in a stock with an expected return of 10%, $32,000 in a stock with an expected return of 14%, and the rest in a stock with an expected return of 23%. What is the expected return of your portfolio?

You have $57,000. You put 16% of your money in a stock with an expected return of 10%, $32,000 in a stock with an expected return of 14%, and the rest in a stock with an expected return of 23%. What is the expected return of your portfolio? The expected return of your portfolio is %. (Round to two decimal places.)

Explanation / Answer

expected return of portfolio=Respective returns*respective investment weights

=(9120/57000*0.1)+(32000/57000*0.14)+(15880/57000*0.23)

=15.87%(Approx)

Investment Expected return (57000*16%)=9120 10 32000 14 (57000-9120-32000)=15880 23

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