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

Finance Dec 02, 2020

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%

Expert Solution

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%

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