You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella Co.,...

You have invested 30 percent of your portfolio in Jacob, Inc., 40 percent is Bella Co., and 30 percent in Edward Resources. What is the expected return of your portfolio if Jacob, Bella and Edward have expected returns of 0.05, 0.13 and 0.18, respectfully? Round to two decimal places.

Expert Solution

Ans 0.12

Stock	Probability (i)	Return (ii)	Probability * Return (i)* (ii)
JACOB INC	30.00%	0.05	0.02
BELLA CO	40.00%	0.13	0.05
EDWARD RESOURCES	30.00%	0.18	0.05
		Total	0.12

jeff jeffy answered 4 hours ago

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