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Problem 8-04 Consider a $81,000 portfolio consisting of three stocks. Their values and expected returns are...

Problem 8-04

Consider a $81,000 portfolio consisting of three stocks. Their values and expected returns are as follows:

Stock Investment Expected Return

A $6,000 12 %

B 25,000 9

C 50,000 19

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

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Answer #1

Stock weights return 7.41% 12.00% 30.86% 9.00% 61.73% 19.00% Weighted expected return Product [weight x return] 0.89% 2.78% 1

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