Given the following weights and expected security returns, calculate the expected return for the portfolio. $$\begin{array} { c c }
\text { Weight } & \text { Expected Return } \
\hline .20 & .06 \
.25 & .08 \
.30 & .10 \
.25 & .12
\end{array}$$
A)0.085
B)0.090
C)0.092
D)0.097
E)None of the above

Question

Given the following weights and expected security returns, calculate the expected return for the portfolio. $$\begin{array} { c c } 
\text { Weight } & \text { Expected Return } \
\hline .20 & .06 \
.25 & .08 \
.30 & .10 \
.25 & .12
\end{array}$$
A)0.085
B)0.090
C)0.092
D)0.097
E)None of the above

Quizplus · Accepted Answer

The expected return for the portfolio is calculated as the weighted average of the expected returns of the individual securities. In this case, the expected return is:(0.20 * 0.06) + (0.25 * 0.08) + (0.30 * 0.10) + (0.25 * 0.12) = 0.092

Given the Following Weights and Expected Security Returns, Calculate the Expected