Problem 8-04 Consider a $59,000 portfolio consisting of three stocks. Their values and expected returns are...

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Problem 8-04 Consider a $59,000 portfolio consisting of three stocks. Their values and expected returns are...

Problem 8-04

Consider a $59,000 portfolio consisting of three stocks. Their values and expected returns are as follows:

Stock	Investment		Expected Return
A		$ 9,000	8	%
B		5,000	6
C		45,000	25

What is the weighted-average expected return on the portfolio? Round your answer to one decimal place.

%

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Answer 1

Answer #1

Stock Investment 9,000.00 5,000.00 45,000.00 59,000.00 Investment Proportion 0.15 0.08 0.76 Return 0.08 0.06 0.25 Weighted Av

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Answer 2

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