Your grandparents give you $1,000 as a graduation gift; you decide to save 50% in bonds and 50% in Apple stock. If the return to the bonds is 3% and the return to Apple is 15%, then your overall return on wealth would be about:

Question

Quizplus · Accepted Answer

The overall return is calculated by taking the weighted average of the returns. Since you invested 50% in bonds and 50% in Apple stock, the overall return is (0.5 * 3%) + (0.5 * 15%) = 1.5% + 7.5% = 9%.

Your Grandparents Give You $1,000 as a Graduation Gift; You