What is the expected dollar return on a portfolio which consists of $9000 invested in an S&P 500 Index fund, $32500 in a technology fund, and $8,500 in Treasury notes.The expected rate of return is 11% on the S&P Index fund, 14% on the technology fund and 2% on the Treasury notes.
A)$13640
B)$571
C)$4500
D)$5710

Question

Quizplus · Accepted Answer

To calculate the expected dollar return on the portfolio, multiply the amount invested in each component by its expected rate of return, then sum these amounts: ($9000 * 0.11) + ($32500 * 0.14) + ($8500 * 0.02) = $990 + $4550 + $170 = $5710.

What Is the Expected Dollar Return on a Portfolio Which