Sam has a portfolio of three assets. Determine the expected rate of return for the portfolio assuming he invests 50 percent of his money in asset A with a 10 percent rate of return, 30 percent in asset B with a 20 percent rate of return, and the remainder in asset C with a 30 percent rate of return?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 5P
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Sam has a portfolio of three assets. Determine the expected rate of return for the portfolio assuming he invests 50 percent of his money in asset A with a 10 percent rate of return, 30 percent in asset B with a 20 percent rate of return, and the remainder in asset C with a 30 percent rate of return?
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