What is the expected return on a portfolio that is 40% invested in A and 60% invested in B?
A) 10%
B) 11%
C) 12.1%
D) 12.8%
E) 13.8%

Question

Quizplus · Accepted Answer

The expected return on a portfolio is calculated by taking the weighted average of the expected returns of the individual investments. If the expected return of A is 10% and B is 13%, then the portfolio return is (0.4 * 10%) + (0.6 * 13%) = 12.1%.

What Is the Expected Return on a Portfolio That Is