Sally's broker told her that the expected return from her portfolio was 14.2%.If 40% of her securities have an expected return of 10.3 percent and 20% have an expected return of 12.8 percent, what is the expected return of the remaining portion of her portfolio?
A)20.9%
B)18.8%
C)12.5%
D)cannot be determined

Question

Quizplus · Accepted Answer

14.2% - 0.4(10.3%) - 0.2(12.8%) = 0.4 X
X = 18.8%

Sally's Broker Told Her That the Expected Return from Her