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Homework answers / question archive / Antoinette has $3,000 invested in Verizon Inc
Antoinette has $3,000 invested in Verizon Inc. with an expected return of 11.6 percent: $10,000 in Apple with an expected return of 12.8 percent and $6.000 in Google with an expected return of 12.2 percent. What is Antoinette's expected return on her portfolio? Assume that higher invested amounts indicative of lower perception of the risk of the stock and vice versa. Also assume that she suddenly rebalances her portfolio by splitting the same total amount equally to all the stocks due to some macroeconomic event. What is the expected return on the new portfolio? Did the event cause her to be more risk-averse or risk-seeking? o o 12.42%; 36.6%; more risk-averse Cannot be determined because weight is not given 12.42%; 36.6% ; more risk-seeking 11.81%; 3.66% more risk-seeking 12.20%; 36.6%; more risk-averse o O