You have a portfolio with the following: Stock Number of Shares Price Expected Return W 525 $43 10% X 780 29 15 Y 435 94 11 Z 680 51 14 What is the expected return of your portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

Question

Izayah Bates

Business

24 July, 01:12

You have a portfolio with the following: Stock Number of Shares Price Expected Return W 525 $43 10% X 780 29 15 Y 435 94 11 Z 680 51 14 What is the expected return of your portfolio? (Do not round intermediate calculations and enter your answer as a percent rounded to 2 decimal places, e. g., 32.16.)

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Answers (1)

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Rayna Swanson · Answer 1

The expected return of your portfolio = 12.42%

Explanation:

At first we have to determine the weight for each of the stock by multiplying number of shares by stock price.

W = 525 x $43 = $22,575

X = 780 x $29 = $22,620

Y = 435 x $94 = $40,890

Z = 680 x $51 = $34,680

Total = $120,765

Stock Capital Weight (W) Expected Return (R) W x R

W $22,575 (22,575/120,765) = 0.1869 10 1.8693

X $22,620 (22,620/120,765) = 0.1873 15 2.8095

Y $40,890 (40,890/120,765) = 0.3386 11 3.7246

Z $34,680 (34,680/120,765) = 0.2872 14 4.0208

= 12.42%