You own a portfolio that has $1,900 invested in Stock A and $2,700 invested in Stock B.If the expected returns on these stocks are 9 percent and 15 percent,respectively,what is the expected return on the portfolio?
A)10.57 percent
B)11.14 percent
C)11.96 percent
D)12.52 percent
E)13.07 percent

Question

Quizplus · Accepted Answer

E(R) = [1,900/($1,900 + $2,700)][0.09] + [$2,700/($1,900 + $2,700)][0.15] = 12.52 percent

You Own a Portfolio That Has $1,900 Invested in Stock