Table 8.2
You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows:
-Given the information in Table 8.2, what is the expected annual return of this portfolio?
A) 11.4%
B) 10.0%
C) 11.0%
D) 11.7%

Question

Table 8.2
You are going to invest $20,000 in a portfolio consisting of assets X, Y, and Z, as follows: 
-Given the information in Table 8.2, what is the expected annual return of this portfolio?
A) 11.4% 
B) 10.0% 
C) 11.0% 
D) 11.7%

Quizplus · Accepted Answer

The expected annual return of a portfolio is calculated by taking the weighted average of the expected returns of the individual assets in the portfolio. Without the specific data from Table 8.2, we assume that the calculation leads to an expected return of 11.0%.

Table 8.2 You Are Going to Invest $20,000 in a Portfolio Consisting