You hold a portfolio with the following securities: Security Percent of portfolio Return Stock A 54% 4.8% Stock B 13% 17.1% Stock C Please calculate it 6.4% Calculate the expected return of portfolio.
Round the answers to two decimal places in percentage form.
Percent of portfolio invested in stock C = 100% - 54% - 13% = 33%
Expected return of portfolio = (0.54 × 0.048) + (0.13 × 0.171) + (0.33 × 0.064) = 0.0693 or 6.93%
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