You own a portfolio that has $5,607 invested in Stock A and $2,853 invested in Stock B. If the expected returns on these stocks are 0.12 and -0.09, respectively, what is the expected return on the portfolio? Enter the answer with 4 decimals (e.g. 0.1234).

You own a portfolio that has $5,607 invested in Stock A and $2,853 invested in Stock B. If the expected returns on these stocks are 0.12 and -0.09, respectively, what is the expected return on the portfolio? Enter the answer with 4 decimals (e.g. 0.1234).

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter3: Risk And Return: Part Ii

Section: Chapter Questions

Problem 3P: Two-Asset Portfolio Stock A has an expected return of 12% and a standard deviation of 40%. Stock B...

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Concept explainers

Stock Market Indices

Stock indexes are used to compare the price fluctuations of a group of stocks of similar companies, which are combined based on a similar industry or a particular market capitalization limit or type of market. The price comparison is based on a pre-determined standard method or indicators. These stock indexes are usually considered a base for comparison of a particular stock, and the performance of that particular company can be easily determined.

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