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Sholpan [36]
3 years ago
8

You own a portfolio that has $3,300 invested in Stock A and $4,400 invested in Stock B. Assume the expected returns on these sto

cks are 9 percent and 15 percent, respectively. What is the expected return on the portfolio
Business
1 answer:
Anton [14]3 years ago
5 0

Answer:

12.42%

Explanation:

Expected return on a portfolio is the sum of the products of weight in the portfolio and expected return of all the investment in the portfolio.

To estimate the expected return on the portfolio, the following calculation are done first:

Total amount invested = Amount invested in Stock A + Amount invested in Stock A = $3,300 + $4,400 = $7,700

Weight of a Stock in a portfolio = Amount invested in the Stock / Total amount invested

Therefore, we have:

WA = Weight of Stock A in the portfolio = $3,300 / $7,700 = 0.43, or 43%

WB = Weight of Stock B in the portfolio = $4,400 / $7,700 = 0.57, or 57%

EA = Expected returns on stock A = 9%

EB = Expected returns on stock A = 15%

Therefore,

Expected return on the portfolio = (WA * EA) + (WB * EB) = (43% * 9%) + (57% * 15%) = 12.42%

Therefore, the expected return on the portfolio is 12.42%.

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The correct option is A

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Transaction costs can be of different types which are:

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lanier company manufactures expensive watch cases sold as souvenirs. three of itssales departments are retail sales, wh
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1 year ago
What kind of PPE should be worn operating a pit​
earnstyle [38]

Answer:

A mask, gloves, gown, face shield.

Explanation:

Try covering up as much as possible, but these are the four most essential protective coverings you should wear while operating a pit. Hope this helps!

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3 years ago
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<span>B. FALSE yes
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3 years ago
Double D Ranch and Esau enter into a contract on August 1 for the sale of 200 cattle. Esau cancels the contract ten days later.
ycow [4]

Answer:

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