A portfolio consists of the following two funds. What is the expected return on fund A?
A)12.0 percent
B)13.3 percent
C)13.7 percent
D)14.5 percent
E)15.7 percent

Name: A portfolio consists of the following two funds. What is the expected return on fund A? A)12.0 percent B)13.3 percent C)13.7 percent D)14.5 percent E)15.7 percent
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Question

A portfolio consists of the following two funds.  What is the expected return on fund A?
A)12.0 percent 
B)13.3 percent 
C)13.7 percent 
D)14.5 percent 
E)15.7 percent

Quizplus · Accepted Answer

Portfolio weight of A = $27,000/($27,000 + $33,000) = .45Portfolio weight of B = $33,000/($27,000 + $33,000) = .55

A Portfolio Consists of the Following Two Funds