Stock A – 70,000 invested stocks, 10% expected return Stock B – 90,000 invested stocks, 12% expected return Stock C – 60,000 invested stocks, 8% expected return What is the expected return of portfolio? a. 12.3% b. 10.3% c. 11.3% d. 13.3%

Stock A – 70,000 invested stocks, 10% expected return Stock B – 90,000 invested stocks, 12% expected return Stock C – 60,000 invested stocks, 8% expected return What is the expected return of portfolio? a. 12.3% b. 10.3% c. 11.3% d. 13.3%

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 10PROB

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Question

The Stocks A, B and C has a weight of 35%, 45%, and 30%, respectively, with a total portfolio value of 200,000.

Stock A – 70,000 invested stocks, 10% expected return

Stock B – 90,000 invested stocks, 12% expected return

Stock C – 60,000 invested stocks, 8% expected return

What is the expected return of portfolio?

a. 12.3%

b. 10.3%

c. 11.3%

d. 13.3%

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