You own a portfolio that has $2,657 invested in Stock A and $2,659 invested in Stock...
You own a portfolio that has $2,657 invested in Stock A and $2,659 invested in Stock B. If the expected returns on these stocks are 9 percent and 15 percent, respectively, what is the expected return (in percent) on the portfolio? Answer to two decimals. Thank you!!
Homework Answers
Total value = $2,657 + $2,659 = $5,316
Expected return of this portfolio = [($2,657/$5,316) * 0.09] + [($2,659/$5,316) * 0.15]
Expected return of this portfolio = 0.1200 or 12.00%
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