Brad's portfolio is made up of two asset classes: 40% Stock averaging 14% annual return 60%...
Brad's portfolio is made up of two asset classes: 40% Stock averaging 14% annual return 60% Bonds averaging 5% annual return What is the total estimated portfolio return?
Homework Answers
Solution-
40% stock gives 14% annual return
60% stock gives 5% annual return
Portfolio return = 14%*0.4 + 5%*0.6= 8.60%
Estimated portfolio return = 8.60%
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