What is the expected return of the three stock portfolio described below?
$$\begin{array} { l c c }
\text { Comman Stack } & \text { MFrket Value } & \text { Experted Raturn } \
\hline \text { Xerax } & 125,000 & 8 \% \
\text { Yelcan } & 250,000 & 25 \% \
\text { Zurebal } & 175,000 & 16 \%
\end{array}$$
A) 18.27%
B) 14.33%
C) 16.33%
D) 12.72%
E) 16.45%

Question

What is the expected return of the three stock portfolio described below?
$$\begin{array} { l c c } 
\text { Comman Stack } & \text { MFrket Value } & \text { Experted Raturn } \
\hline \text { Xerax } & 125,000 & 8 \% \
\text { Yelcan } & 250,000 & 25 \% \
\text { Zurebal } & 175,000 & 16 \%
\end{array}$$
A) 18.27%
B) 14.33%
C) 16.33%
D) 12.72%
E) 16.45%

Quizplus · Accepted Answer

W_X= 125,000 ¸ 550,000 = 0.2273 W_Y= 250,000 ¸ 550,000 = 0.4545 W_Z = 175,000 ¸ 550,000 = 0.3182 0.1827 = (0.2273)(0.08)+ (0.4545)(0.25)+ (0.3182)(0.16)

What Is the Expected Return of the Three Stock Portfolio