Calculate the expected return for a three asset portfolio with the following $$\begin{array} { c c c c }
\text { Asset } & \text { Exp. Ret. } & \text { Std. Dev } & \text { Weight } \
\hline \text { A } & 0.0675 & 0.12 & 0.25 \
\text { B } & 0.1235 & 0.1675 & 0.35 \
\text { C } & 0.1425 & 0.1835 & 0.40
\end{array}$$
A)11.71%
B)11.12%
C)15.70%
D)14.25%
E)6.75%.

Question

Calculate the expected return for a three asset portfolio with the following $$\begin{array} { c c c c } 
\text { Asset } & \text { Exp. Ret. } & \text { Std. Dev } & \text { Weight } \
\hline \text { A } & 0.0675 & 0.12 & 0.25 \
\text { B } & 0.1235 & 0.1675 & 0.35 \
\text { C } & 0.1425 & 0.1835 & 0.40
\end{array}$$
A)11.71%
B)11.12%
C)15.70%
D)14.25%
E)6.75%.

Quizplus · Accepted Answer

Expected return = (0.0675 * 0.25) + (0.1235 * 0.35) + (0.1425 * 0.40) = 0.11125 or 11.125%

Calculate the Expected Return for a Three Asset Portfolio with the Following