You have compiled the following information on your investments.What rate of return should you expect to earn on this portfolio?
A)9.54 percent
B)9.83 percent
C)10.01 percent
D)10.27 percent
E)10.58 percent

Question

You have compiled the following information on your investments.What rate of return should you expect to earn on this portfolio? 
A)9.54 percent 
B)9.83 percent 
C)10.01 percent 
D)10.27 percent 
E)10.58 percent

Quizplus · Accepted Answer

Value_A = 150 × $23 = $3,450Value_B = 400 × $37 = $14,800Value_C = 200 × $42 = $8,400Value_D = 350 × $16 = $5,600Value_Port = $3,450 + $14,800 + $8,400 + $5,600 = $32,250Expected return = [($3,450/$32,250) × 0.128] + [($14,800/$32,250) × 0.036] + [($8,400/$32,250) × 0.098] + [($5,600/$32,250) × 0.245] = 9.83 percent

You Have Compiled the Following Information on Your Investments