You own a portfolio that has $2,045 invested in Stock A and $4,096 invested in Stock B. If theexpected returns on these stocks are 14 percent and 8 percent, respectively, what is the expectedreturn (in percent) on the portfolio? Answer to two decimals.

Answered: You own a portfolio that has $2,045…

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter8: Risk And Rates Of Return

Section: Chapter Questions

Problem 6PROB

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You own a portfolio that has $2,045 invested in Stock A and $4,096 invested in Stock B. If the expected returns on these stocks are 14 percent and 8 percent, respectively, what is the expected return (in percent) on the portfolio? Answer to two decimals.