Question

You have invested 8 per cent of your portfolio in an investment with an expected return of 10 per cent and 92 per cent o...

You have invested 8 per cent of your portfolio in an investment with an expected return of 10 per cent and 92 per cent of your portfolio in an investment with an expected return of -7 per cent. What is the expected return of your portfolio? (as a percentage to two decimal places; eg 2.881% is 2.88))

Select one:

a. -5.64%

b. 8.64%

c. 3.56%

d. -6.14%

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Answer #1

D9 A 8 X B Return (r) 10.00% -7.00% fc C Weights 0.08 0.92 =C9*B9 D Weighted Return 0.80%) -6.44% 9 Stock 10 Stock B 11 12 Ex

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