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Marry holds a portfolio with the following securities   Security Percent of portfolio return Stock A 38% -6

Finance Mar 08, 2021

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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