Ask Question
26 December, 20:03

You own a portfolio that is invested 43 percent in stock a, 16 percent in stock b, and the remainder in stock

c. the expected returns on stocks a, b, and c are 9.1 percent, 16.7 percent, and 11.4 percent, respectively. what is the expected return on the portfolio

+4
Answers (1)
  1. 26 December, 20:07
    0
    Multiply the investment fraction by the corresponding return, and add the products. The given fractions add to 59%, so the remainder is 41%. (The total of the fractions is 100%-all of the portfolio.)

    ... 0.43*9.1% + 0.16*16.7% + 0.41*11.4%

    ... = 3.913% + 2.672% + 4.674% = 11.259%
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “You own a portfolio that is invested 43 percent in stock a, 16 percent in stock b, and the remainder in stock c. the expected returns on ...” in 📗 Mathematics if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers