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You own a two-asset portfolio, with 58% in Stock A and the remainder in Stock B....

You own a two-asset portfolio, with 58% in Stock A and the remainder in Stock B. Stock A has a return of 25.17% and Stock B has a return of 5.88%. What is the portfolio return?

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Answer #1
Weight of A = 0.58
Weight of B = 0.42
Return of Portfolio = Weight of A*Return of A+Weight of B*Return of B
Return of Portfolio = 25.17*0.58+5.88*0.42
Return of Portfolio = 17.07%
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