An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K

Finance Dec 11, 2020

An investment advisor has recommended a $50,000 portfolio containing assets R, J, and K. $25,000 will be invested in asset R, with an expected annual return of 12 percent. $10,000 will be invested in asset J, with an expected annual return of 18 percent. $15,000 will be invested in asset K, with an expected annual return of 8 percent. Compute the expected annual rate of return of this Portfolio

Expert Solution

So, expected annual rate of return of this Portfolio is 12%.

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