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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.**

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Answer #1

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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