What is the expected return of the three stock portfolio described below?
$$\begin{array} { l c c }
\text { Comuman Stack } & \text { Markat Value } & \text { Expacted Raturn } \
\hline \text { Lupkka Inc. } & 50,000 & 13 \% \
\text { Mackey Co. } & 25,000 & 9 \% \
\text { Nippan Inc. } & 75,000 & 14 \%
\end{array}$$
A) 12.04%
B) 12.83%
C) 13.07%
D) 15.89%
E) 17.91%

Question

What is the expected return of the three stock portfolio described below?
$$\begin{array} { l c c } 
\text { Comuman Stack } & \text { Markat Value } & \text { Expacted Raturn } \
\hline \text { Lupkka Inc. } & 50,000 & 13 \% \
\text { Mackey Co. } & 25,000 & 9 \% \
\text { Nippan Inc. } & 75,000 & 14 \%
\end{array}$$
A) 12.04%
B) 12.83%
C) 13.07%
D) 15.89%
E) 17.91%

Quizplus · Accepted Answer

W_L = 50,000 ¸ 150,000 = 0.33 (0.33)(13)= 4.33 W_M= 25,000 ¸ 150,000 = 0.167 (0.167)(9)= 1.50 W_N = 75,000 ¸ 150,000 = 0.50 (0.50)(14)= 7.0 4.33 + 1.50 + 7.0 = 12.83%

What Is the Expected Return of the Three Stock Portfolio