You have invested $5,000 in RBC stock,$12,000 in TD stock,and $18,000 in WestJet stock.If you expect the return on RBC to be 4% in the next year,the return on TD to be 5%,and the return on WestJet to be 6%,what is the expected return for your portfolio?

Question

Quizplus · Accepted Answer

The expected return for the portfolio is the weighted average of the expected returns for each stock, where the weights are the proportions of the portfolio invested in each stock. In this case, the weights are 5000/35000 = 1/7 for RBC, 12000/35000 = 4/15 for TD, and 18000/35000 = 6/15 for WestJet. The expected return for the portfolio is therefore (1/7 * 4%) + (4/15 * 5%) + (6/15 * 6%) = 5.4%.

You Have Invested $5,000 in RBC Stock,$12,000 in TD Stock,and