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PilotLPTM [1.2K]
3 years ago
11

Year to date, Company Y had earned a 10.8 percent return. During the same time period, Company R earned 12.20 percent and Compan

y C earned −1.56 percent. If you have a portfolio made up of 45 percent Y, 35 percent R, and 20 percent C, what is your portfolio return?
Business
1 answer:
Monica [59]3 years ago
8 0

Answer:

8.82%

Explanation:

The computation of the portfolio return is shown below:

Portfolio return = Respective returns ×Respective weights

= (10.8 × 0.45) + (12.2 × 0.35) + (-1.56 × 0.20)

= 8.82%

Hence, the portfolio return is 8.82%

We simply applied the above formula so that the portfolio return could come

And, the same is to be considered

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