Question
In: Finance
You have $58,000. You put 17% of your money in a stock with an expected return...
You have $58,000. You put 17% of your money in a stock with an expected return of 12%, $35,000 in a stock with an expected return of 17%, and the rest in a stock with an expected return of 20%. What is the expected return of your portfolio?
The expected return of your portfolio is %. (Round to two decimal places.)
Solutions
Expert Solution
Ans 16.83%
| Investment (i) | Return (ii) | Total Return (i)* (ii) | |
| 9,860.00 | 12.00% | 1,183.20 | |
| 35,000.00 | 17.00% | 5,950.00 | |
| 13,140.00 | 20.00% | 2,628.00 | |
| Total | 58,000.00 | 9,761.20 | |
| Expected Return = | Total Return / Investment | ||
| 9761.20 / 58000 | |||
| 16.83% | |||
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