What is the expected return of the three stock portfolio described below?
$$\begin{array} { l c c }
\text { Comman Stark } & \text { MFarkt Value } & \text { Experted Raturn } \
\hline \text { Anda Inc. } & 95,000 & 12.0 \% \
\text { Bee Ca. } & 32,000 & 8.75 \% \
\text { Cadl Inc. } & 65,000 & 17.7 \%
\end{array}$$
A) 18.45%
B) 12.82%
C) 13.38%
D) 15.27%
E) 16.67%

Question

What is the expected return of the three stock portfolio described below?
$$\begin{array} { l c c } 
\text { Comman Stark } & \text { MFarkt Value } & \text { Experted Raturn } \
\hline \text { Anda Inc. } & 95,000 & 12.0 \% \
\text { Bee Ca. } & 32,000 & 8.75 \% \
\text { Cadl Inc. } & 65,000 & 17.7 \%
\end{array}$$
A) 18.45%
B) 12.82%
C) 13.38%
D) 15.27%
E) 16.67%

Quizplus · Accepted Answer

W_A = 95,000 ¸ 192,000 = 0.4947 W_B= 32,000 ¸ 192,000 = 0.1667 W_C= 65,000 ¸ 192,000 = 0.3385 0.1338 = (0.4947)(0.12)+ (0.1667)(0.0875)+ (0.3385)(0.177)

What Is the Expected Return of the Three Stock Portfolio