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Marry holds a portfolio with the following securities Security Percent of portfolio return Stock A 38% -6
Marry holds a portfolio with the following securities
Security Percent of portfolio return
Stock A 38% -6.4%
Stock B 20% 13.0%
Stock C please calculate it 5.0%
Calculate the expected return of portfolio.
Expert Solution
Computation of the Expected Return of Portfolio:
Expected Return of Portfolio = 0.38*(-6.4%)+0.20*(13%)+0.42*(5.0%)
=-2.43%+2.6%+2.10%
Expected Return on Portfolio = 2.27%
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