Last year stock A had a return of 7 percent and stock B had a return of 10 percent. If you held each stock equally in a...
Last year stock A had a return of 7 percent and stock B had a return of 10 percent. If you held each stock equally in a portfolio (i.e. 50% in A and 50% in B), what would the return of your portfolio have been?
**ENTER YOUR ANSWER AS A PERCENTAGE WITH ONE DECIMAL PLACE (e.g., 12.1) AND NOT AS A DECIMAL (e.g., 0.121). ROUND TO THE NEAREST TENTH OF A PERCENT.**
Homework Answers
Ans 8.5%
| Stock | Probability (i) | Return (ii) | Stock Return (i)* (ii) |
| A | 50.00% | 7.00% | 3.500% |
| B | 50.00% | 10.00% | 5.00% |
| Total | 8.50% |
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