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You own a portfolio that has $2,150 invested in Stock A and $3,050 invested in Stock B

Finance

You own a portfolio that has $2,150 invested in Stock A and $3,050 invested in Stock B. If the expected returns on these stocks are 9 percent and 14 percent, respectively, what is the expected return on the portfolio?(Do not round your intermediate calculations.)


rev: 09_20_2012

Multiple Choice

  • 12.53%

  • 11.93%

  • 12.17%

  • 11.50%

  • 11.07%

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Ans 11.93%

Stock Investment (i) Return (ii) Investment* Return (i)* (ii)
A                       2,150 9%                                               193.50
B                       3,050 14%                                               427.00
Total                       5,200                                                 620.50
       
Expected Return = (Investment * Return) / Investment * 100
  620.50 / 5200 * 100  
  11.93%