You have invested in a portfolio of four stocks:
-Refer to the information above. Calculate the expected return of the portfolio. Round your answer to the nearest hundredth of a percent.

Question

You have invested in a portfolio of four stocks: 
-Refer to the information above. Calculate the expected return of the portfolio. Round your answer to the nearest hundredth of a percent.

Quizplus · Accepted Answer

The expected return of the portfolio is the weighted average of the expected returns of the individual assets. The expected return of Asset A is 10%, the expected return of Asset B is 15%, and the expected return of Asset C is 5%. The weights of the assets are 50%, 30%, and 20%, respectively. Therefore, the expected return of the portfolio is (0.50 * 10%) + (0.30 * 15%) + (0.20 * 5%) = 11.08%.

You Have Invested in a Portfolio of Four Stocks