Assume that you have $100,000 invested in a stock that is returning 14%,$150,000 invested in a stock that is returning 18%,and $200,000 invested in a stock that is returning 15%.What is the expected return of your portfolio?
A) 13.25%
B) 14.97%
C) 15.67%
D) 15.78%

Question

Quizplus · Accepted Answer

The expected return of a portfolio is the weighted average of the expected returns of the individual assets in the portfolio. In this case, the expected return of the portfolio is:(0.14 * 100,000) + (0.18 * 150,000) + (0.15 * 200,000) / (100,000 + 150,000 + 200,000) = 15.78%

Assume That You Have $100,000 Invested in a Stock That