Answer:
Expected return - Portfolio = 0.1155 or 11.55%
Explanation:
The expected return on the portfolio is the weighted average of the expected returns of the individual stocks that form up the portfolio. Thus, the formula for the expected return of the portfolio is,
Expected return - Portfolio = rA * wA + rB * wB + ... + rN * wN
Where,
- rA, rB, ... represents the expected return on stock A, return on stock B and so on
- w represents the weight of each stock in the portfolio
Expected return - Portfolio = 0.09 * 0.35 + 0.15 * 0.2 + 0.12 * 0.45
Expected return - Portfolio = 0.1155 or 11.55%
Jack is making an assumption while john is making a believable excuse
Steam engine brought about advancement in transportation and trade by powering locomotives and steamships which carried both goods and people to distant places in record time. Over the years, knowledge continue to increase and new inventions emerge, these include diesel and electric trains. Today, steam engines are no longer in use. Those that exist are used for historical, entertainment and educational purposes.
