Assume that you have $200,000 invested in a stock that is returning 14%,$300,000 invested in a stock that is returning 18%,and $400,000 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:(0.20 * 0.14) + (0.30 * 0.18) + (0.40 * 0.15) = 0.1578 = 15.78%

Assume That You Have $200,000 Invested in a Stock That