Question

Portfolio Return Year-to-date, Company O had earned a -6.8 percent return. During the same time period,...

Portfolio Return Year-to-date, Company O had earned a -6.8 percent return. During the same time period, Company V earned 9.05 percent and Company M earned 2.08 percent. If you have a portfolio made up of 25 percent Company O, 60 percent Company V, and 15 percent Company M, what is your portfolio return?

Multiple Choice

  • 4.33 percent

  • 7.44 percent

  • 4.04 percent

  • 17.93 percent

0 0
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Answer #1

Portfolio return=Respective return*Respective weight

=(-6.8*0.25)+(9.05*0.6)+(2.08*0.15)

which is equal to

=4.04 percent(Approx).

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