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A portfolio consists of $16,800 in Stock M and $27,400 invested in Stock N

Finance

A portfolio consists of $16,800 in Stock M and $27,400 invested in Stock N. The expected return on these stocks is 9.70 percent and 13.30 percent, respectively. What is the expected return on the portfolio?

Multiple Choice

  • 11.07%
  • 10.15%
  • 12.62%
  • 11.93%
  • 11.50%

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So, the correct option is 4th "11.93%". The expected return on the portfolio is 11.93%.