You own a portfolio that is 25 percent invested in Stock X, 35 percent in Stock Y, and 40 percent in Stock Z. The expected returns on these three stocks are 8 percent, 12 percent, and 17 percent, respectively. What is the expected return on the portfolio?
You own a portfolio that is 25 percent invested in Stock X, 35 percent in Stock Y, and 40 percent in Stock Z. The expected returns on these three stocks are 8 percent, 12 percent, and 17 percent, respectively. What is the expected return on the portfolio?
Chapter8: Analysis Of Risk And Return
Section: Chapter Questions
Problem 12P
Related questions
Question
100%
You own a portfolio that is 25 percent invested in Stock X, 35 percent in Stock Y, and 40 percent in Stock Z. The expected returns on these three stocks are 8 percent, 12 percent, and 17 percent, respectively.
What is the expected return on the portfolio?
Format as a percent and round to one place past the decimal point as "XX.X"
Expert Solution
This question has been solved!
Explore an expertly crafted, step-by-step solution for a thorough understanding of key concepts.
This is a popular solution!
Trending now
This is a popular solution!
Step by step
Solved in 2 steps
Knowledge Booster
Learn more about
Need a deep-dive on the concept behind this application? Look no further. Learn more about this topic, finance and related others by exploring similar questions and additional content below.Recommended textbooks for you
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
EBK CONTEMPORARY FINANCIAL MANAGEMENT
Finance
ISBN:
9781337514835
Author:
MOYER
Publisher:
CENGAGE LEARNING - CONSIGNMENT
Intermediate Financial Management (MindTap Course…
Finance
ISBN:
9781337395083
Author:
Eugene F. Brigham, Phillip R. Daves
Publisher:
Cengage Learning
Pfin (with Mindtap, 1 Term Printed Access Card) (…
Finance
ISBN:
9780357033609
Author:
Randall Billingsley, Lawrence J. Gitman, Michael D. Joehnk
Publisher:
Cengage Learning