You own a portfolio that has $1,500 in Stock A and $1,500 in Stock B. If...

You own a portfolio that has $1,500 in Stock A and $1,500 in Stock B. If the expected returns on the two stocks are 9% and 11%, respectively, what is the expected return on the portfolio?

9.5%
11.5%
10.75%
20%
or 10%

Expert Solution

Ans 10%

Stock	INVESTMENT (i)	Return (ii)	InvestmentReturn (i) (ii)
A	1,500	9%	135.00
B	1,500	11%	165.00
Total	3,000		300.00


AVERAGE Return =	(INVESTMENT * RETURN) / TOTAL INVESMENT
	300 / 30000
	10%

jeff jeffy answered 1 year ago

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