You have $65,000. You put 21% of your money in a stock with an expected return...

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You have $65,000. You put 21% of your money in a stock with an expected return...

You have $65,000.

You put 21% of your money in a stock with an expected return of 15%, $31,000 in a stock with an expected return of 13%, and the rest in a stock with an expected return of 19%.

What is the expected return of your portfolio?

The expected return of your portfolio is? (Round to two decimal places.)

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Answer 1

Answer #1

w2 = $31,000/$65,000 = 0.4769

w3 = 1 - w1 - w2 = 1 - 21% - 47.69% = 31.31%

Expected return for portfolio = 21% * 15% + 47.69% * 13% + 31.31% * 19%

Expected return of portfolio = 3.15% + 6.20% + 5.95%

Expected return of portfolio = 15.30%

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Answer 2

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