Xander owns the following portfolio of stocks. What is the return on his portfolio? $$\begin{array} { c c c }
\text { Stock } & \text { Amount Invested } & \text { Return on Stock } \
\hline \mathrm { L } & \$ 7,000 & - 8.0 \% \
\mathrm { M } & \$ 10,000 & 9.5 \% \
\mathrm {~N} & \$ 2,600 & 14.6 \%
\end{array}$$
A) 3.93%
B) 6.61%
C) 10.76%
D) 9.97%

Question

Xander owns the following portfolio of stocks. What is the return on his portfolio? $$\begin{array} { c c c } 
\text { Stock } & \text { Amount Invested } & \text { Return on Stock } \
\hline \mathrm { L } & \$ 7,000 & - 8.0 \% \
\mathrm { M } & \$ 10,000 & 9.5 \% \
\mathrm {~N} & \$ 2,600 & 14.6 \%
\end{array}$$
A) 3.93%
B) 6.61%
C) 10.76%
D) 9.97%

Quizplus · Accepted Answer

To calculate the overall return on the portfolio, we first find the return from each stock by multiplying the amount invested by the return rate, then sum these returns, and divide by the total investment. For stock L: $7,000 * (-8.0\%) = -$560. For stock M: $10,000 * 9.5\% = $950. For stock N: $2,600 * 14.6\% = $379.6. The total return is -$560 + $950 + $379.6 = $769.6. The total investment is $7,000 + $10,000 + $2,600 = $19,600. The overall return percentage is ($769.6 / $19,600) * 100 = 3.93%.

Xander Owns the Following Portfolio of Stocks A) 393% B) 6

Xander Owns the Following Portfolio of Stocks A) 393%
B) 6