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percent of stock X, 20 percent of stock Y, and the rest in stock Z. Stock X has an expected return of 10%, stock Y has an expected return of 15%, and stock Z has an expected return of 2%. What is the

EBK CONTEMPORARY FINANCIAL MANAGEMENT

14th Edition

ISBN:9781337514835

Author:MOYER

Publisher:MOYER

Chapter8: Analysis Of Risk And Return

Section: Chapter Questions

Problem 25P

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Question

Your portfolio is comprised of 40 percent of stock X, 20 percent of stock Y, and the rest in stock Z. Stock X has an expected return of 10%, stock Y has an expected return of 15%, and stock Z has an expected return of 2%. What is the expected return of your portfolio?

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