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12 July, 06:22

Year-to-date, Oracle had earned a - 1.38 percent return. During the same time period, Valero Energy earned 7.62 percent and McDonald's earned 0.40 percent. If you have a portfolio made up of 35 percent Oracle, 30 percent Valero Energy, and 35 percent McDonald's, what is your portfolio return?

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  1. 12 July, 06:39
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    1.94%

    Explanation:

    The computation of portfolio return is shown below:-

    Portfolio return = Sum of (return from stock * Weight of stock)

    = (-1.38 * 35%) + (7.62 * 30%) + (0.40 * 35%)

    = 0.483 + 2.286 + 0.14

    = 1.94%

    Therefore for computing the portfolio return we simply multiply the sum of return from stock with sum of weight of stock.
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